10 Most Undervalued US Stocks to Buy According to Hedge Funds

4. Micron Technology Inc. (NASDAQ:MU)

Forward P/E Ratio as of March 6: 12.85

Number of Hedge Fund Holders: 94

Micron Technology Inc. (NASDAQ:MU) is a memory and storage solutions company that designs, develops, and manufactures a portfolio of DRAM, NAND, and NOR memory and storage products under the Micron and Crucial brands. It serves markets like data centers, mobile devices, and automotive industries through a robust global sales and distribution network.

The company’s High Bandwidth Memory (HBM) segment drives its growth. It’s ramping up production to achieve market share in the low-20s by H2 2025. This is based on an expected HBM Total Addressable Market exceeding $30 billion in 2025. The company is experiencing a robust HBM ramp, with 8-high HBM3E exceeding initial expectations and plans to transition to 12-high stacks. Capacity is being added incrementally across various dimensions, which includes equipment installation and qualification. This has led to gradual week-over-week growth. This expansion is necessary as the company started from a low base in HBM3 and HBM2E.

The company anticipates continued solid HBM revenue growth sequentially through FY25 and calendar 2025, driven by the increasing adoption of 12-high HBM3E. Morgan Stanley analyst Joseph Moore recently reduced Micron Technology Inc.’s (NASDAQ:MU) price target from $98 to $91 while maintaining an Equal Weight rating. This adjustment reflected concerns that DeepSeek’s AI innovations could cause deflation and potentially trigger increased export controls or decreased investment.

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.”