Occidental Petroleum, Silver Viper, Micron Technology – New and old favorites

Occidental Petroleum – Debt down, potential high

While many analysts remain hesitant, the arguments for an operational and strategic revaluation of Occidental Petroleum are mounting. Although Piper Sandler and Bank of America have only raised their price targets moderately and remain "Neutral," this is precisely where the opportunity lies. Sentiment is still subdued, but the fundamentals for both the oil and gas sector and the US company have brightened significantly behind the scenes.

A game changer for OXY shares is the sale of the OxyChem chemical division to Berkshire Hathaway for USD 9.7 billion. The proceeds correspond to around a quarter of the market capitalization and will be used almost entirely to reduce debt. With total liabilities recently standing at around USD 22.9 billion, Occidental is gaining significant financial flexibility.

At the same time, the company is benefiting from the tailwind provided by the energy policy in the US. "Energy dominance," as announced by US President Donald Trump, is currently a top priority in the land of opportunity. As one of the country's largest oil and gas producers, Occidental is strategically well-positioned here and, in addition to assets in the US, also has projects in the Middle East and North Africa.

Added to this are geopolitical tensions in Venezuela and Iran, which could tighten supply and support oil prices. If the conflict with Iran escalates, the share price, which has just managed to overcome the downward trend that has been in place since April 2024, is likely to test the significant horizontal resistance level at USD 55.51. If this level is also broken on a sustained basis, the high from August 2022 at USD 77.13 beckons.

Silver Viper – Explorer with leverage on the next move

The sharp correction in the price of silver caught many market participants off guard. However, after the previous rally, the pullback was overdue and healthy from a technical perspective. Given structural supply deficits, high industrial demand, and geopolitical uncertainties, this pause could lay the foundation for the next upward surge.

In this environment, exploration companies with high-grade projects in established mining regions are coming into focus. One example is Silver Viper Minerals. The Canadian company is developing several gold and silver projects in Mexico, a country that accounts for around 20% of global silver production. The centerpiece is the La Virginia project in Sonora. Over 52,000 meters have already been drilled on the 6,800-hectare property. A historical resource estimate indicates significant gold and silver resources in the "indicated" and "inferred" categories.

The geological model here suggests an epithermal system with low sulfidation, a setting known for high precious metal grades. Ongoing drilling programs aim to expand known zones such as "El Rubi" and "El Molino" and systematically test additional anomalies. At the same time, the financial base was strengthened by a capital increase of approximately CAD 17 million to advance several projects simultaneously.

The complete consolidation of the Coneto project in a productive silver region is also strategically important. The portfolio is complemented by additional precious metal assets. Well-known investors such as Fresnillo, Orex Minerals, and institutional investors are already involved.

After highs of CAD 2.55, the share price corrected to CAD 1.66 and successfully defended its strong support level. If silver continues its overall upward trend, an explorer with this project quality offers disproportionate leverage.

Micron Technology - Memory chips ignite the next AI rally

The AI supercycle has chosen a new stock market star in memory chip manufacturers. The rapid expansion of data centers is causing an explosion in demand for working and mass storage. Because production is concentrated among a few suppliers, supply can hardly keep up, and prices are rising massively.

While the big AI platform stocks, and especially the "Mag 7", have recently suffered from profit-taking and valuation doubts, capital is rotating into the next bottleneck of the AI trade. Investors are questioning the margins of the tech giants in light of gigantic investments in infrastructure. Memory manufacturers, on the other hand, are benefiting directly from the boom.

High Bandwidth Memory (HBM), which is used in AI accelerators, is in particularly high demand. After South Korean competitors initially took the lead with HBM4, Micron countered by pointing out that mass production had started earlier than expected and that demand was significantly exceeding supply. Chief Financial Officer Mark Murphy also predicted a continuing shortage to persist at least through 2026, implying continued elevated pricing and strong margins.

Analysts are responding with ever-higher price targets, and the consensus is rapidly catching up. Micron shares have gained around 320% within a year, and since the beginning of the year alone, they have risen by almost 40%. Technically, the steep rise calls for caution, but fundamentally, business is booming.

Following the sharp correction in silver, strategically strong exploration companies such as Silver Viper offer long-term entry opportunities. Occidental Petroleum has managed to break out of its downward trend, while Micron is riding the HBM wave.