One of the world’s largest companies – Apple – has carried the tech sector higher this year.
The iPhone maker has rallied nearly 45% in 2020 and set another record high as recently as Friday, a day after a blowout earnings report.
But, Apple isn’t the only way to play strength in the sector, according to long-time tech investor Paul Meeks who manages the Wireless Fund.
“Probably my favorite ideas, not necessarily in the near term because I can’t predict the near term but over the next couple of years, are two semiconductor-related names,” Meeks told CNBC’s “Trading Nation” on Friday.
His first pick is Micron Technology, a chipmaker that has lagged a broad rally among the semiconductor stocks this year.
“I think they will double their stock price over the next two or three years, whereas some of the marquee tech stocks I think will continue to outperform but they can’t double from here,” said Meeks.
Micron is down 7% in 2020, while the SMH semiconductor ETF has gained 18%.
“Then the other one that I like is semiconductor capital equipment manufacturer ASM Lithography. Those two are probably my favorite ideas for tech over the next couple of years,” he said.
“We’re in a tech world and everything else is just revolving around us in the periphery,” said Meeks. “Perhaps you don’t like those valuations, there’s some that I don’t like at any particular time. But, these all are stocks that are probably over time, if you’re a serious tech investor, must haves.”
Disclosure: WIREX holds Micron, Apple, Facebook and Amazon.