5 Tech Stocks to Buy According to Billionaire David Tepper

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

Tepper’s Stake Value: $480.3 million

Percentage of David Tepper’s 13F Portfolio: 9.94%

Number of Hedge Fund Holders: 87

Micron Technology, Inc. (NASDAQ:MU) is a technology company based in Idaho that engages in the design and production of innovative memory and storage solutions. Ranked first on the list of the 10 tech stocks to buy according to billionaire David Tepper, Micron Technology, Inc. (NASDAQ:MU) has a market capitalization of $79.92 billion.

According to the recent 13F Filings, David Tepper’s Appaloosa Management holds 5.65 million shares of Micron Technology, Inc. (NASDAQ:MU), worth $480.3 million and representing 9.94% of the fund’s portfolio. At the end of the second quarter of 2021, 87 hedge funds in the database of Insider Monkey held stakes worth $6.3 billion in Micron Technology (NASDAQ:MU), down from 100 in the preceding quarter worth $7.6 billion.

On September 27, Raymond James analyst Chris Caso lowered the firm’s price target on Micron Technology, Inc. (NASDAQ:MU) to $100 from $120 and kept a Strong Buy rating on the shares.

In its Q1 2021 investor letter, Bonsai Partners, an asset management firm, highlighted Micron Technology (NASDAQ:MU)’s improving results for the quarter. Here is 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?”

You can also take a peek at 10 Cheap Dividend Kings with Over 2% Yield and 12 Best Semiconductor Stocks To Invest In Right Now.

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