1) Micron Technology, Inc. (NASDAQ:MU)
Average Upside Potential: 38.02%
Forward P/E Ratio (As of September 25): 11.12x
Micron Technology, Inc. (NASDAQ:MU) designs, develops, manufactures, and sells memory and storage products worldwide.
Market experts believe that Micron Technology, Inc. (NASDAQ:MU) continues to enjoy a wide economic moat, which stems from its vertically integrated supply chain capabilities, strong R&D capabilities, and strategic partnerships. The company’s technological leadership and well-diversified portfolio should further strengthen Micron Technology, Inc. (NASDAQ:MU)’s moat. Its NAND and storage businesses and advancements in 1-beta DRAM, and G8/G9 NAND technologies should aid its growth prospects in the near term.
Micron Technology, Inc. (NASDAQ:MU) continues to prepare for elevated demand in data centers and AI markets, expecting strong revenue growth in these sectors. It expects a record quarterly revenue for fiscal Q1 2025 and continues to expand its manufacturing footprint globally. The record revenue should come on the heels of the high-volume production of advanced technology nodes. Moreover, cost reductions are expected in DRAM and NAND for fiscal 2025.
Micron Technology, Inc. (NASDAQ:MU) has plans to expand its manufacturing footprint, which includes new facilities in Idaho, India, and China. The demand for HBM should grow, with the company’s HBM3E products providing lower power consumption and higher capacity. It focuses on aligning customer requirements and maintaining a healthy and stable position in the HBM market.
Bank of America upped its price target on shares of Micron Technology, Inc. (NASDAQ:MU) from $144.00 to $170.00, giving a “Buy” rating on 17th June. According to Insider Monkey’s Q2 data, 120 hedge funds held long positions in the company.
Parnassus Investments, an investment management company, released the second quarter 2024 investor letter. Here is what the fund said:
“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.”
While we acknowledge the potential of MU as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than MU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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