Craig Johnson Recommends Buying This Stock In Semiconductor Space

On CNBC’s "Trading Nation," Craig Johnson of Piper Sandler said the technical charts are showing the picture of strong fundamentals, with stocks surging to new highs.

After looking at the VanEck Semiconductor ETF (NASDAQ: SMH) chart, Johnson said there is still more room to go higher. He added although NVIDIA Corporation (NASDAQ: NVDA) is a strong stock, he recommends buying Broadcom Inc. (NASDAQ: AVGO) to those who want to have some semiconductor exposure.

Johnson added that he would buy individual stocks in the semiconductor space rather than investing in the whole sector. The semiconductor ETF surged around 9% last week, with Nvidia adding over $140 billion in market value since Monday.

Price Action: Nvidia shares dropped 0.2% to close at $297.52, while Broadcom’s stock rose 1.9% to settle at $558.92 on Friday.