15 Best Hardware Stocks According To Goldman Sachs

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

Number of Hedge Fund Shareholders In Q1 2024: 115

Micron Technology, Inc. (NASDAQ:MU) is one of the largest memory chip manufacturers in the world – a role that lends it a key position in the AI industry. The memory industry was dead center in a June 2024 analyst note by Bernstein who shared that advanced HBM memory revenue could touch as much as $25 billion in 2025. Consequently, Bernstein rated Micron Technology, Inc. (NASDAQ:MU)’s shares as Outperform and upgraded the share price target to $140 from $105; This note came after UBS upgraded Micron Technology, Inc. (NASDAQ:MU)’s share price target to $155 from $125 and kept a Buy rating based on a rising. trend in the industry towards HBM products.

While Micron Technology, Inc. (NASDAQ:MU) might benefit from HBM, it also ships large volumes of traditional products worldwide. This lends the stock an aura of stability not growth and a forward price to earnings ratio of 19.42 which is lower than the market’s 21 attests to this fact. Sequoia Fund mentioned Micron Technology, Inc. (NASDAQ:MU) in its Q4 2023 investor letter, where it explained the reasons behind exiting its position in the stock:

As discussed in our Q2 shareholder letter, we exited Micron after the rationale for our investment was strained by rising geopolitical tensions, which have increased investment risks in the high-performance semiconductor industry. These risks are bearable, but we felt it prudent to reduce the portfolio’s exposure to them. We think both Bank of America and Micron were purchased at conservative prices given the facts at hand, but the facts changed and we moved on.