10 Most Promising Future Stocks According to Analysts

2. Micron Technology Inc (NASDAQ:MU)

Number of Hedge Fund Holders as of Q2: 120

Analyst Upside as of October 10, 2024: 45%

Micron Technology Inc (NASDAQ:MU) is a promising stock because it focuses on future technologies, including artificial intelligence. Its memory and storage solution is critical for advancements in AI, machine learning, and data centres, affirming why it is one of the most promising future stocks, according to analysts.

The leading provider of DRAM and NAND memory plays a crucial role in the operation of semiconductor-driven devices and guarantees the seamless operation of software programs. The rationale behind investing in Micron Technology Inc (NASDAQ:MU) has shifted due to advancements in cloud computing and artificial intelligence (AI). These innovations have resulted in a continuous rise in the need for digital memory solutions.

Strong demand for memory solutions amid the AI race has enabled the firm to start fiscal 2025 with the “highest competitive standing in history. Unsurprisingly, this robust demand comes from the company’s data centre sector.

Additionally, the latest quarterly results affirmed strong demand for the company’s solutions as revenues increased 62% from the previous fiscal year to $25 billion. This growth has resulted in a gross margin of 22%, significantly better than the -9% gross margins seen in the previous fiscal year.

Furthermore, the leadership team managed to control the rise in operating costs, enabling the company to report a net profit of $778 million for the fiscal year 2024. This represents a remarkable turnaround from the $5.8 billion loss reported in the fiscal year before.

Micron Technology Inc (NASDAQ:MU) remains one of the most promising future stocks, having predicted revenue growth of 84% between $8.5 billion and $8.9 billion for its fiscal first quarter. For this reason, analysts rate the stock as a buy with an average price target of $148.68, implying a 45% upside potential. In addition to the significant price swing, Micron rewards investors with a 0.45% dividend yield.

Parnassus Value Equity Fund 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.”