This Semiconductor Stock is Beating Broadcom and Nvidia So Far This Year And It Could Gain Another 34%

"What's been the best-performing semiconductor stock of the year? Broadcom ( NASDAQ:AVGO) would have been a safe answer, especially after its latest blowout quarterly earnings result. Nvidia ( NASDAQ:NVDA) would have been another, given its meteoric two-year rise and how well-positioned the GPU giant is to shock and awe with its Rubin chips and beyond. And while Broadcom and Nvidia have both been exceptional gainers on the year, it's a "commoditized" memory chip maker that's led the way for the semis, at least on a year-to-date basis."

"With a fresh upgrade courtesy of Citi, which hiked its price target by $25 to $175 per share, and quarterly earnings just under two weeks away, perhaps the breakout "value" name in semis is worth a closer look as we pass September's midpoint. For the most part, it's been a strong and stable month of September so far, which may come off as a bit of a surprise given the month's jittery track record of market losses."

"In any case, I still don't think it's too late to punch a ticket to Micron stock as its shares look technically sound going into earnings. Indeed, buying MU shares for a breakout play might just work this time of year. Of course, chasing a name that's up 17% in a week may not sit too well for some of the more cautious investors out there."

Micron's shares have risen more than 72% year-to-date, surpassing Broadcom's 55% and Nvidia's 28% gains. Citi raised its price target for Micron by $25 to $175 per share ahead of quarterly earnings roughly two weeks away. The stock jumped 7.5% in one session and shows technical strength leading into earnings. September has been unusually strong and stable despite the month's historical tendency toward market losses. Some investors view Micron as a breakout "value" semiconductor play, while others may hesitate after a 17% one-week surge. Upcoming earnings could prove make-or-break for the company.

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