10 Best Cheap Technology Stocks To Buy According to Analysts

3. Micron Technology Inc. (NASDAQ:MU)

Forward P/E Ratio: 12.48

Average Upside Potential: 58.16%

Number of Hedge Fund Holders: 107

Micron Technology Inc. (NASDAQ:MU) designs, manufactures, and sells memory and storage products globally. It operates through four business units: Compute and Networking, Mobile, Embedded, and Storage. It provides DRAM, NAND flash memory, and other storage solutions under the Micron and Crucial brands. It serves markets for data centers, PCs, graphics, networking, automotive, industrial, and mobile devices.

Morgan Stanley analyst Joseph Moore lowered the company’s price target to $91 from $98 on February 12, maintaining an Equal Weight rating. Moore cited potential deflationary effects from DeepSeek’s AI innovations and the possibility of increased export controls or reduced spending enthusiasm in the AI sector. Despite this, he remains positive on the semiconductor sector overall.

But Micron Technology Inc. (NASDAQ:MU) is investing heavily in AI-related infrastructure. It has begun construction of a $7 billion High-Bandwidth Memory advanced packaging facility in Singapore, scheduled to begin operations in 2026. This facility, the first of its kind in Singapore, will support growing AI demand and expand the company’s advanced packaging capacity by 2027, creating 1,400 initial jobs with plans to reach 3,000.

It’s also expanding its consumer product line with offerings relevant to AI applications. New additions to the Crucial lineup include the high-speed Crucial P510 SSD and expanded DRAM options, such as the 32GB Crucial DDR5 Pro Overclocking Gaming Memory and the 64GB DDR5 Pro Plug-and-Play Memory. These products offer faster, more power-efficient solutions for various users, including those working with AI-driven applications.

Parnassus Value Equity Fund is positive on the company’s prospects, due to the revenue growth in its memory segments and its advantageous position to benefit from AI-driven demand. It stated the following regarding Micron Technology Inc. (NASDAQ:MU) in its Q2 2024 investor letter:

“Micron Technology, Inc. (NASDAQ:MU) posted fiscal-third-quarter results that met expectations. Micron’s DRAM (dynamic random access memory) and NAND (non-volatile storage technology) segments grew revenue strongly, continuing the company’s recovery from a cyclical downturn last year. We believe Micron is well positioned to capitalize on AI-driven demand for greater memory.”