Micro Technology Inc (NASDAQ: MU) ended in the red today even after Sahak Manuelian said it was one of the best names to own in the semiconductor space.
Manuelian makes a case for the Micron stock
Last month, the memory chip maker issued abysmal guidance for its current financial quarter. Still, Manuelian said this afternoon on CNBC’s “TechCheck”:
Micron already reduced DRAM and NAND wafer starts to right size supply. Deterioration in memory conditions is well understood by the Street. Our view is that the industry is closer to a trough than a peak.
Peer NXP Semiconductors offered a roughly in line guidance just a day earlier that also fed into his constructive view on semiconductor stocks at large.
So far, the Micron stock has gained about 20% this year.
Micron will benefit once the Fed stops raising rates
According to Sahak Manuelian, shares of the Boise-headquartered firm will also benefit as the U.S. Federal Reserve starts to turn less hawkish.
We’ve seen treasuries trending higher all month. We’ve seen better inflation numbers, CPI, PPI, PCE deflator for sure. We’ve seen ISM prices paid coming lower. These should be decent signs for the Fed.
On Tuesday, Invezz reported that the employment cost index was also up less than expected in the final quarter of 2022. The central bank is widely expected to announce a narrower 25 basis points increase in interest rates tomorrow.
Wedbush Securities currently has an “outperform” rating on the Micron stock.
The post Wedbush’s Manuelian reveals his top semiconductor stock appeared first on Invezz.