20 Best Artificial Intelligence (AI) Stocks to Buy According to Analysts

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

Number of Hedge Fund Holders: 107

Average Upside Potential: 41.8%

Micron Technology, Inc. (NASDAQ:MU)’s advanced DRAM products, like HBM3 (High Bandwidth Memory), are critical for handling the high-speed data processing demands of AI models. The memory industry continues to experience a transformative period fueled by AI and data center demand growth. Micron Technology, Inc. (NASDAQ:MU) remains well-positioned to capitalize on these trends, with its data center revenue making more than 50% of total revenues for the first time in Q1 2025.

With AI and high-performance computing applications fueling demand for HBM, Micron Technology, Inc. (NASDAQ:MU)’s technological edge is expected to translate into market share gains and higher margins. Its leadership in advanced memory technologies, mainly HBM, places it well to capitalize on the ever-evolving AI and data center markets. The company increased its HBM market TAM (total addressable market) estimate to surpass $30 billion in 2025. Rosenblatt analyst, Steve Frankel, reiterated a “Buy” rating on the shares of Micron Technology, Inc. (NASDAQ:MU) with a price target of $250. The analyst is optimistic about the big opportunity for DRAM content deployment in AI platforms.

Delaware Funds by Macquarie, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:

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.”