12 Cheap AI Stocks to Buy in 2025

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

Analyst Upside (as of January 27): 59.15%

No. of Hedge Fund Holders: 107

Micron Technology, Inc. (NASDAQ:MU) designs, develops, manufactures, and sells memory and storage products internationally. Some of the top customers of Micron include Apple, Dell, HP, IBM, Lenovo, Microsoft, and Samsung. In early 2024, the company started mass production of HBM chips for NVIDIA’s AI graphics processing units, expanding its position in the AI market.

Micron Technology, Inc. (NASDAQ:MU) experienced a robust AI demand in 2024 and anticipates higher revenue, improved profitability, and positive FCF in FY2025. In Q1 FY2025, the company posted revenue of $8.71 billion, posting record revenue with a year-over-year increase of a remarkable 84%. The company’s data center revenue soared over 400% from a year ago and 40% quarter-over-quarter, reaching a record level of data center revenue. In addition to that, Micron received a $6.1 billion agreement with the U.S. Department of Commerce under the CHIPS and Science Act to support advanced DRAM manufacturing.

Delaware Ivy Core Equity Fund stated the following regarding Micron Technology, Inc. (NASDAQ:MU) in its Q3 2024 investor letter:

“Micron Technology, Inc. (NASDAQ:MU) – Fundamentals here also appear solid though concern about global demand for handsets and PCs drove the shares down during the quarter. We expect Micron to be a significant beneficiary of growth in AI demand as an investment in new data centers is extremely memory (semiconductor) intensive.”