10 Most Undervalued S&P 500 Stocks to Buy Now

7. Micron Technology Inc. (NASDAQ:MU)

Forward P/E Ratio as of March 14: 13.28

Number of Hedge Fund Holders: 94

Micron Technology Inc. (NASDAQ:MU) is a memory and storage solutions company that designs, develops, and manufactures DRAM, NAND, and NOR memory technologies under Micron and Crucial brands. It serves critical applications in data centers, mobile devices, automotive, and industrial sectors.

As January concluded, Morgan Stanley analyst Joseph Moore revised the company’s price target and lowered it from $98 to $91, while maintaining an Equal Weight rating. This reflected concerns regarding DeepSeek’s AI advancements that could lead to deflationary pressures. Moore suggested that the market’s response might trigger increased export restrictions or a decline in spending within the semiconductor industry, although it’s unexpected. However, he remains optimistic about the sector’s overall prospects.

The company’s data center segment contributes over 50% of its revenue as of FQ1 2025.  It’s invested in the AI memory market, with HBM as a focus. The HBM market is projected to surpass $30 billion in 2025. The company is transitioning to 12-high HBM production, which will boost revenue throughout 2025. Micron Technology Inc. (NASDAQ:MU) is a frontrunner in deploying LPDDR5X memory in data centers for AI workloads. It’s partnering with players like NVIDIA, that use LPDDR5X’s performance and efficiency advantages.

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.”