12 Most Undervalued Tech Stocks to Invest in Now

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

Forward P/E Ratio: 14.82

Earnings Growth: 369.66%

Number of Hedge Fund Holders: 107

Micron Technology, Inc. (NASDAQ:MU) is a prominent player in the storage solutions industry. The company manufactures various types of storage devices including DRAM, NAND, NOR Flash, and SDDs. It stands out in a competitive industry based on its portfolio of patent storage technology and innovation. The company has been actively engaged in developing High-Bandwidth Memory and Low-Power DDR5X Solutions to increase its market share by 2025.

On December 16, 2024, JPMorgan reiterated its Overweight rating maintaining its price target of $180 for Micron Technology, Inc. (NASDAQ:MU). Analysts at the firms had predicted that the company would surpass revenue and EPS estimates for the fiscal first quarter of 2025. The expectation stood true as the company delivered an EPS of $1.79 beating the estimates by $0.02 and revenue of $8.71 billion (84.3% increase year-over-year) was also ahead of market consensus by $11.74 million. The revenue growth was driven by a better product mix and strong shipments related to NVDA’s H200 platform.

In addition, management has also been expanding its facilities with new investments. On January 8, Micron Technology, Inc. (NASDAQ:MU) announced a significant expansion project by breaking ground on a new High-Bandwidth Memory (HBM) advanced packaging facility in Singapore. The new facility is aimed to meet the increasing demand for memory solutions required by artificial intelligence and data centers. The company ranks as the most undervalued tech stock to invest in now.

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 investment in new data centers is extremely memory (semiconductor) intensive.”

While we acknowledge the potential of Micron Technology, Inc. (NASDAQ:MU) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an 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.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.