In this article, we will be looking at the 5 best machine learning stocks to invest in. If you want to see our detailed analysis of these companies, you can go directly to the 10 Best Machine Learning Stocks to Invest In.
5. Micron Technology, Inc. (NASDAQ: MU)
Number of Hedge Fund Holders: 100
Micron Technology, Inc. (NASDAQ: MU) is a manufacturer of memory and storage products for sale across the globe. The company has also introduced its Micron Deep Learning Accelerator technology, cementing its presence in the machine learning sector. It ranks 5th on our list of the best machine learning stocks to invest in.
This July, Citigroup analyst Christopher Danely raised his financial year 2021 and 2023 estimates for Micron Technology, Inc. (NASDAQ: MU) in light of the company’s quarterly reports exceeding expectations. Danely also reiterated a Buy rating and the firm’s $135 price target on the company’s shares.
In the fiscal third quarter of 2021, Micron Technology, Inc. (NASDAQ: MU) had an EPS of $1.88, beating estimates by $0.16. The company’s revenue was $7.42 billion, up 36.48% year over year and beating estimates by $153.35 million. Micron Technology, Inc. (NASDAQ: MU) has also gained 59.54% in the past year.
As of the end of the first quarter of 2021, 100 hedge funds out of the 866 tracked by Insider Monkey held stakes in Micron Technology, Inc. (NASDAQ: MU) worth roughly $7.62 billion. This is compared to 100 hedge funds in the previous quarter with a stake value of about $8.14 billion.
Bonsai Partners mentioned Micron Technology, Inc. (NASDAQ: MU) in its first-quarter 2021 investor letter. Here‘s what the fund said:
“Micron is a manufacturer of memory semiconductor chips. Micron appreciated 17.3% during the quarter.
With the semiconductor cycle in full swing, sentiment continued to improve for major DRAM and NAND suppliers. Spot pricing for DRAM continues its upward march due to supply shocks across the industry and sustained demand levels that continue to outstrip supply.
As a result, Micron showed improving results for the fiscal first quarter, raised guidance intra-quarter for the fiscal second quarter, and offered strong guidance for the fiscal third quarter in both growth and margins.
While the cyclical nature of DRAM hasn’t changed, the cycles themselves continue to become more benign, leading to long-term economic improvement across these businesses. Micron is now continuously profitable, with industry players in a dramatically stronger position than even just five years ago.
The biggest negative surprise in the quarter came from Micron’s exit from its 3D XPoint hybrid memory business. The company also announced its decision to sell its accompanying Utah fab. Fortunately, this development does not alter the investment thesis much since 3D XPoint was an option ticket for future growth. While it’s unfortunate this product didn’t pan out, now is an excellent time to sell a fab, so perhaps it is a blessing in disguise?”
