10 Undervalued Semiconductor Stocks to Buy According to Analysts

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

Upside Potential: 33%

Fwd. PE: 15.9

Micron Technology, Inc. (NASDAQ:MU) designs, develops, manufactures, and markets memory and storage products, including dynamic random-access memory (DRAM), flash memory (NAND), solid-state drives (SSDs), and High Bandwidth Memory (HBM) globally. The company is well-positioned to capitalize on technological advancements in AI, 5G, autonomous vehicles, and data centers. Following the strong quarterly results announced in December 2024, Company President and CEO Sanjay Mehrotra expressed optimism:

“While consumer-oriented markets are weaker in the near term, we anticipate a return to growth in the second half of our fiscal year. We continue to gain share in the highest margin and strategically important parts of the market and are exceptionally well positioned to leverage AI-driven growth to create substantial value for all stakeholders.”

Micron Technology, Inc. (NASDAQ:MU) has positioned its High Bandwidth Memory (HBM) products as a key growth driver, with the company anticipating the total addressable market (TAM) for HBM to expand fourfold by 2028, from $16 billion in 2024 to over $100 billion by 2030. The company’s management has reported significant traction for HBM chips, with sequentially doubling HBM revenue in its latest quarter. Buoyed by this success, Micron Technology, Inc. (NASDAQ:MU) has announced a $7.0 billion investment in a new HBM advanced packaging facility, which will be located adjacent to its existing facilities in Singapore and is expected to be operational by 2026.

Additionally, a report from Berstein analysts suggests that Micron Technology, Inc. (NASDAQ:MU) and Samsung could gain an advantage from the new US export rules, as these regulations will further impact Chinese competitors. The US has tightened the rules for certain memory chips, reducing the allowed size from 1z to 18nm, which will render older technologies ineffective and give firms like Micron Technology, Inc. (NASDAQ:MU) and Samsung a competitive edge.