10 Most Promising Tech Stocks According to Hedge Funds

6. Micron Technology, Inc. (NASDAQ:MU)

Number of Hedge Fund Holders: 120

Micron Technology, Inc. (NASDAQ:MU) ranks sixth on our list of the most promising technology stocks according to hedge funds. The semiconductor company is home to intelligent infrastructure enabling the development of artificial intelligence and generative AI applications. Its primary offerings include memory and storage products.

In the fiscal year 2024, Micron Technology, Inc. (NASDAQ:MU) grew its revenue by 62% and gross margins by more than 30 percentage points, driven by growth in its data center and automotive segments. During the year, the company invested $8.1 billion in capital expenditures and expects capex to be considerably higher in 2025.

For the fiscal first quarter of 2025, Micron Technology, Inc. (NASDAQ:MU) expects revenue to reach $8.7 billion and gross margin at 39.5%. The company is also a market leader in its DRAM and NAND technologies, accounting for 69% and 31% of its revenue respectively.

On September 26, Dan Morgan, Synovus Trust’s senior portfolio manager, appeared in an interview on Yahoo Finance to share his outlook on MU. According to Morgan, MU is benefiting from the AI boom and the company has only started to accelerate. Morgan adds that its smartphone and PC segment is not doing as well as its data center segment. However, the company is slowly solidifying and it may take a couple more quarters to see strong returns.

The company is shifting its complete focus to meeting the demands for artificial intelligence and data center customers, two of the fastest-growing industries. The company’s leadership in process technologies promises strong growth and higher returns.

Baird Chautauqua International and Global Growth Fund stated the following regarding Micron Technology, Inc. (NASDAQ:MU) in its Q3 2024 investor letter:

“After Micron Technology, Inc.’s (NASDAQ:MU) price appreciated 54% in 1H24, investors became anxious about potential memory weakness, less clear cyclical recovery pace, and whether competitor Samsung will act rationally with capacity expansion. We maintain our long-term positive view on the industry’s demand/supply situation. We believe Micron is well positioned in technology capability, and that its margins will continue to improve.”