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.
While those are his top ideas, he says any tech investor should at least be exposed to some of the market’s biggest companies including Apple, Facebook and Amazon.
“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.