15 Best Hardware Stocks According to Hedge Funds

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

Number of Hedge Fund Shareholders In Q1 2024: 115

Micron Technology, Inc. (NASDAQ:MU) is a chip designer that makes and sells memory products. These chips work along with GPUs to process and power AI workloads. Another highly rated AI stock, the average of 30 one year analyst share price targets for Micron Technology, Inc. (NASDAQ:MU) is $145.05 and the shares are rated Strong Buy on average. Morgan Stanley was out with some good news for Micron Technology, Inc. (NASDAQ:MU)’s investors in May 2024 when it raised the share rating to Equalweight from Underweight and increased the share price target to $130 from $98. At the heart of this upgrade are advanced HBM memory products, and Morgan Stanley believes Micron Technology, Inc. (NASDAQ:MU) can benefit from a HBM ramp up for AI.

As of Q1 2024 end, 115 hedge funds tracked by Insider Monkey were Micron Technology, Inc. (NASDAQ:MU) ‘s stakeholders. Rajiv Jain’s GQG Partners owned the most valuable stake that was worth $533 million.

While Morgan Stanley is optimistic for Micron Technology, Inc. (NASDAQ:MU), the AI hardware stock’s forward P/E ratio of 18.45, which is lower than the market’s 21, suggests that it might grow more slowly than the broader index. Sequoia Fund commented on the firm in its Q4 2023 investor letter and shared:

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.