13 Most Undervalued NASDAQ Stocks To Buy According To Hedge Funds

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

Number of Hedge Fund Holders: 94

Forward P/E Ratio as of March 12: 12.66

Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products across the US, Asia, Europe, and other markets. It operates through four segments – Compute and Networking, Mobile, Embedded, and Storage. On March 12, Wolfe Research adjusted its price target for MU from $175 to $150 but kept its Outperform rating on the stock.

In the first quarter of fiscal 2025, Micron Technology, Inc. (NASDAQ:MU) reported revenue of $8.71 billion, up from $7.75 billion in the previous quarter and $4.73 billion in the same period last year. The company posted a GAAP net income of $1.87 billion, or $1.67 per diluted share. Operating cash flow stood at $3.24 billion, compared to $3.41 billion in the prior quarter and $1.40 billion a year ago. Capital expenditures for the quarter amounted to $3.13 billion, resulting in adjusted free cash flow of $112 million. By the end of the quarter, Micron held $8.75 billion in cash, marketable investments, and restricted cash.

Among the hedge funds tracked by Insider Monkey in the fourth quarter of 2024, Micron Technology, Inc. (NASDAQ:MU) was part of 94 public stock portfolios, down from 107 in the preceding quarter. D E Shaw was one of the largest stakeholders of the company, with 4.2 million shares worth $353 million.

Overall, Micron Technology, Inc. (NASDAQ:MU) ranks first on our list of the most undervalued NASDAQ stocks to buy. While we acknowledge the potential of MU to grow, our conviction lies in the belief that certain 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 30 Best Stocks to Buy Now According to Billionaires.

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