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Semis could rally up to 30% within two years, tech investor Paul Meeks predicts

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'You have to play the game now to benefit,' semiconductor bull Paul Meeks says

The investor who ran the world's largest tech fund during the dot-com boom predicts the semiconductor win streak is just beginning.

Paul Meeks, who came into the year short semis, is now actively putting money to work in the space because he believes the group could surge 20% to 30% within two years.

His reasoning: chip makers are making meaningful progress working through excess inventory.

"You have to be in early," he told CNBC's "Trading Nation" on Friday. "You have to play the game now to benefit."

Meeks, who's now a portfolio manager at Independent Solutions Wealth Management, emphasizes semis are highly cyclical. So when they move, it's much earlier than the rest of the tech space.

"The call that I'm making in semiconductors is not that the fundamentals are back to the races," he said. "I actually think we're troughing now in semiconductors and we won't see a re-acceleration of topline growth for another six to nine months."

It appears Wall Street is encouraged by what it sees, too. The VanEck Vectors Semiconductor ETF and the iShares PHLX Semiconductor ETF both hit all-time highs on Friday.

According to Meeks, another major upside catalyst would be an end to the U.S.-China trade war in the coming year.

"Part of it has been exacerbated by all of the uncertainties dealing with China tariff and trade," added Meeks.

Meeks' top semi pick

His top pick among the semis is Micron.

Meeks estimates the stock price could soar another 50% to 60% within two years because valuations are so low. He also lists the company's earnings power and memory chip domination as reasons to buy the name.

"Micron and some of these other companies that have the massive leverage can really do well next year when we have a confirmation of the rebound," Meeks said.

Micron shares surged more than 10% last week, and are up 50% so far this year.

The company is expected to post quarterly numbers in December.

Disclosures: Paul Meeks holds positions in the stocks discussed.

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Now is the time to put money to work in semis, investor Paul Meeks says