35 Chip Stocks Powering AI Boom

4. Micron Technology (NASDAQ:MU)

Number of Hedge Fund Holders: 120     

Micron Technology (NASDAQ:MU) makes and sells memory and storage products. There is compelling evidence that the firm will deliver solid returns for investors in the coming months. The chip firm looks set to benefit from accelerating spending on AI products, including high-bandwidth memory solutions. One such area within memory solutions, that of HBM3E, has an escalating shipment ramp that could yield strong margin pictures. Micron stock also trades at an attractive P/E ratio of 7x, well below the industry average in the semi space. The firm is expected to release the quarterly earnings report later this month.

Micron Technology (NASDAQ:MU) is keenly followed by analysts on Wall Street. Raymond James recently lowered the price target on the stock to $125 from $160 and kept an Outperform rating, noting that the price target decrease reflected slower near-term volume growth in non-HBM DRAM and NAND markets, as reiterated by management at recent investor conferences, and highlighted that a higher peak multiple was justified given the strong secular growth from HBM.