15 Most Promising Technology Stocks to Buy Now

4. Micron Technology Inc. (NASDAQ:MU)

Number of Hedge Funds: 107

Potential Upside: 26%

Micron Technology Inc. (NASDAQ:MU) designs, develops, manufactures, and markets memory and storage products, including dynamic random-access memory (DRAM), flash memory (NAND), solid-state drives (SSDs), and High Bandwidth Memory (HBM) globally. The company is well-positioned to capitalize on technological advancements in AI, 5G, autonomous vehicles, and data centers.

Micron Technology Inc. (NASDAQ:MU)’s HBM chips are particularly designed to handle data-intensive workloads in data center servers, AI applications, and high-performance computing. The company has positioned its HBM products as a key growth driver, anticipating the total addressable market (TAM) for HBM to expand fourfold by 2028, from $16 billion in 2024 to over $100 billion by 2030. The company’s management has reported significant traction for HBM chips, with HBM revenue doubling sequentially in its latest quarter. Buoyed by this success, Micron Technology Inc. (NASDAQ:MU) has announced a $7.0 billion investment in a new HBM advanced packaging facility, to be located adjacent to its existing facilities in Singapore and expected to be operational by 2026.

On February 13, a Citi analyst reaffirmed his Buy rating on Micron Technology Inc. (NASDAQ:MU) shares with a target price of $150, despite the company’s recent guidance indicating a sequential decline in gross margin by a few hundred points. The analyst had initially anticipated a slight sequential increase. Although the fiscal Q3 gross margin forecast was lowered from 40% to 35% and described as “disappointing,” the analyst maintains a positive outlook on Micron Technology Inc. (NASDAQ:MU), citing the potential for high bandwidth memory in artificial intelligence and a belief that the DRAM market will rebound in the spring.