The semiconductor chip shortage has led to a number of companies both rise and fall over the past few months. Now, memory-related chips are starting to see a strong rally, even holding its own as other tech stocks have dipped in the past few days.
The move higher may continue, as analysts are starting to upgrade these companies on their strong potential in the next few quarters as well.
One potential winner in the space is Micron (MU). The memory chip maker has just been upgraded thanks to rising demand for memory chips.
- My #1 EV Stock (NOT Tesla)
I believe this little-known company will be the next EV giant.
Its car is faster than Ferrari's F8, McLaren's 720S and Porsche's 911 Turbo. Yet it's 100% electric.
And while it's a marvel of American engineering...The CEO wants it to be an everyman's car... and plans to ship out 1 million per year.
Already, it's set to grow faster than Tesla, Amazon and Facebook... COMBINED. Sales could DOUBLE to $5.5 billion in 2023... then almost double again to $9.9 billion a year after that.
Simply put, this company could be on the verge of a HUGE run.
The recent rally has finally brought the share return in-line with the S&P 500 index over the next year. With the company growing earnings at 175 percent over the past year and revenue up 37 percent, it’s likely that shares can continue to move far higher.
Action to take: Shares yield a paltry 0.1 percent, so investors may want to pick up shares in anticipation of a move higher, not for any current or future income.
With shares starting to move higher in recent sessions, traders may want to consider a short-term call option trade. The January $90 calls, last going for about $4.10, offer a leveraged upside to a further rally in shares.
Disclosure: The author of this article has a position in the company mentioned here, and may further trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.