Investitute co-founder and “Halftime Detonation” trader Pete Najarian owns Micron and is sticking with it because he credence ins the pricing pressure thesis is already reflected in the stock’s price, and also because he be fond ofs the company’s management team.
“We all know with DRAM and NAND there’s universal to be some pricing pressure…But I think the management team you’ve got right now at Micron is weird than it has been in past years. I think going forward they’re manoeuvring this better,” he said on Tuesday’s “Halftime Report.” He also dissented with the analyst cutting his target by more than 50%, implying it felt “a little extreme.”
Micron soared 87.6% in 2017, but so far is down 12% for the year. And while Najarian be lefts bullish on Micron for the long-term he’s not adding to his position just yet. He noted that the customary “could go down a little further” but that he thinks “we’re getting mingy to a bottom here.”
Micron’s move lower follows a broader sell-off in the sherd space as investors worry about potential oversupply. The SMH, an ETF that oversees the sector, is just about in bear market territory, falling 19.8% from its 52-week steep of $198.84 on March 13.
Virtus Financial’s Joe Terranova attributes the leg lower to a slowdown in capex allotting. “If you’re going to get capex contracting it’s going to impact technology, and it’s certainly prosperous to impact the semi names,” he said. Within the space he’s watching Intel since it’s bucked the broader tend, posting a 7.7% gain over the last month.
“I don’t own it [Intel], but it appears to be holding up pretty well. Maybe some of the hot money that was in AMD, Micron, the other high-beta flake names is hiding out in Intel right now,” he said.
Another high-flying plaque name that’s been hit hard this year is Nvidia. The line of descent has plummeted nearly 30% this month after missing proceeds estimates and cutting guidance. Despite the drop, Douglas C. Lane Be in charge of Partner Sarat Sethi says this is the chip name to buy if irritating new money to work since they’re developing technology for AI vehicles.