In this article, we’re going to talk about the 8 best US stocks for foreign investors right now.
Optimism Amid Market Strength
Despite previous recession predictions, the market has shown resilience and continued to rise, largely due to multiple expansions rather than just earnings growth. Current market valuations are trading at approximately 22 times earnings during an easing cycle, raising questions about future earnings growth. There seems to be a disconnect between expectations for significant easing and projected strong earnings growth.
Investors are encouraged to remain vigilant and consider the evolving economic landscape as they navigate potential market shifts. Earlier in October, Jason Trennert, Strategas Research Partners chairman and CEO, joined CNBC to discuss the latest market trends and the state of the economy, highlighting that the bar is high to get bearish now. We covered his opinion in our article about the 8 High Growth High Margin Stocks to Invest In Now in much more detail. Here’s an excerpt from that discussion:
“Despite the challenges of 2022 and early 2023, which made it difficult to envision a market recovery, he noted that the market has defied expectations and continued to rise. Trennert attributed a significant portion of this upward movement to multiple expansions rather than just earnings growth. He marked a pivotal moment in 2023 as the failure of Silicon Valley Bank, which led to increased liquidity in the market and a subsequent rally. He recalled that around eleven months ago, the S&P 500 briefly hit 4,100 when ten-year yields reached 5%, suggesting that market dynamics have shifted considerably since then.
….He expressed skepticism about future earnings growth, as expectations for a 14% increase in S&P earnings next year seem inconsistent with the anticipated six rate cuts from the Fed. He emphasized that if the market is expecting such significant easing while also projecting strong earnings growth, there may be a disconnect.
…Despite these concerns, Trennert acknowledged that it is challenging to adopt a bearish outlook given current market conditions. He noted that ten-year treasury yields above 4.5% typically lead to market indigestion, while yields below this threshold make it hard to remain pessimistic.”
On October 16, J.J. Kinahan, IG North America CEO, joined CNBC’s ‘Squawk Box’ to discuss the latest market trends, highlighting that he has never seen investors this afraid of a market that’s doing so well. J.J. Kinahan noted that the upcoming weeks would be particularly interesting due to the convergence of earnings reports and the impending election, alongside uncertainty surrounding the Fed’s next moves. He remarked on the market’s resilience, highlighting that there have been 46 new highs for the S&P 500 this year, despite a general sentiment of skepticism among investors. He expressed that it is unusual for a market to perform so well while simultaneously being viewed with caution and fear.
Kinahan pointed out that many investors are hesitant, particularly those in their mid-30s and younger, who have not experienced a significant downturn in the market. He explained that this demographic often perceives any market decline as temporary, lasting only a few days. He emphasized the importance of taking risks when young and noted that many younger investors are excited about their opportunities in the current market environment. This positive sentiment is particularly significant given their parents’ experiences during the financial crisis of 2008-2009.
He also speculated that part of the reason for the market’s strong performance might be attributed to older investors who have been burned in previous downturns and are now waiting for a pullback that has yet to materialize. Kinahan suggested that as these investors gradually capitulate, they may start to invest more actively in the market.
Discussing interest rates, Kinahan acknowledged that while the Fed is in a massive easing cycle, there seems to be a disconnect with the bond market recently. He mentioned a study indicating that volatility during election years is not significantly greater than in non-election years. Currently, volatility is relatively low, hovering around a historical average of 20, and only recently rising to this level. He explained that typically, volatility tends to increase after elections, when political changes begin to take effect and policies, are implemented. He anticipated that January would bring more clarity regarding how these changes might impact the markets.
Kinahan’s insights reflect a complex interplay between investor sentiment, market performance, and external economic factors as they navigate through earnings season and an election year. His perspective underscores a cautious optimism about the market’s ability to maintain its upward trajectory despite prevailing uncertainties. That being acknowledged, we’re here with a list of the 8 best US stocks for foreign investors right now.
Methodology
To find the best US stocks for foreign investors, we used Insider Monkey’s proprietary database to find US stocks that were the most popular among elite and that analysts were bullish on. We then selected the top 8 stocks with the highest average analysts’ upside potential. The stocks are ranked in ascending order of their average analysts’ upside potential, as of October 16.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
8 Best US Stocks For Foreign Investors Right Now
8. Amazon.com Inc. (NASDAQ:AMZN)
Average Upside Potential: 17.14%
Number of Hedge Fund Holders: 308
Amazon.com Inc. (NASDAQ:AMZN) originally started as an online bookselling company and then later morphed into an internet-based business enterprise that is largely focused on providing e-commerce, cloud computing, digital streaming, and artificial intelligence services. Its logistics network ensures efficient delivery, and it continues to expand into new areas like healthcare and digital advertising.
AWS, its cloud computing division has over 30% profit margins and a projected growth rate of 15-21% annually until 2028. This impressive growth was exemplified by a recent 18.8% increase in Q2 2024. Another key driver of the company’s profitability is Amazon Prime. With 200 million global members, its revenue reaches ~$100 billion annually. The advertising business has also become a major source of income, now valued at $50 billion.
Overall, its Q2 2024 results were encouraging, with a 10.12% year-over-year revenue jump driven by strong performance across all segments. AWS, in particular, led the way with a 19% increase. Operating income also soared to a healthy $14.7 billion. Looking ahead, Amazon.com Inc. (NASDAQ:AMZN) anticipates continued sales growth of 8-11% in Q3 2024.
On October 10, the company revealed that its Prime Big Deal Days event set new records for October shopping events. Year over year, a greater number of Prime members participated, taking advantage of early holiday promotions. The two-day event kicked off the holiday shopping season with record sales, surpassing all previous October events in terms of items sold.
One key area of investment is AI. It has already allocated $30.5 billion to capital expenditures this year and plans to increase this spending in the second half. This significant investment is driven by the surging demand for both generative and non-generative AI technologies. By investing heavily in AI infrastructure, the company is demonstrating its commitment to staying at the forefront of this rapidly evolving field. The focus on high-growth areas positions it for continued dominance in the e-commerce and technology landscape.
Meridian Hedged Equity Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2024 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) is a global technology company that operates e-commerce, cloud computing, digital advertising, and other businesses. We own Amazon because we believe it is well-positioned to benefit from several strong secular trends, including the shift to online shopping, the growth of cloud computing, and the increasing importance of digital advertising. The company exceeded expectations in the first quarter, with cloud-computing revenue growth accelerating, driven by easing cost optimization pressures and the ramp of generative AI workloads. The North American retail segment drove record operating margins, highlighting the success of Amazon’s efforts to improve efficiency and lower its cost to serve. International retail also showed promise, as emerging markets steadily progressed towards profitability. Given the strength across these key segments, we continue to hold the position in the company.”
7. Microsoft Corp. (NASDAQ:MSFT)
Average Upside Potential: 18.21%
Number of Hedge Fund Holders: 279
Microsoft Corp. (NASDAQ:MSFT) is a multinational technology company that develops, licenses, and supports computer software, consumer electronics, and personal computers. Founded in 1975, it became the world’s largest software maker by revenue in the mid-1990s through the success of its Windows operating system. Today, it offers a range of products and services, including the Windows operating system, Office productivity suite, Azure cloud computing platform, Xbox gaming consoles, and Surface devices.
The company’s FQ4 2024 was a success, with revenue reaching $64.73 billion, up 15.20% year-over-year, earning $2.95 per share. Microsoft Cloud led the way, generating $36.8 billion, up 21%, with record bookings. Office commercial sales hit $48 billion, while individual Office sales reached $6.2 billion, up 4%. Dynamics ERP and CRM software sales grew 19% to $6.3 billion. Bing also saw a 3% increase as more users switched from Google Search.
Its Azure OpenAI service has seen a 60% surge in customers, reaching 60,000 in the past quarter. Azure revenue surged by 30%. Partnerships with Lumen Technologies and Palantir strengthen its AI leadership and cloud capabilities. These strategic moves make Microsoft Corp. (NASDAQ:MSFT) a promising investment for investors seeking growth and returns.
The company’s growth extends beyond cloud services. Its Copilot software, an AI-powered productivity assistant, is gaining traction. Microsoft 365 Copilot customer numbers grew over 60% sequentially in FQ4. With an Office 365 user base exceeding 400 million, its future of productivity tools looks promising.
Generation Investment Management Global Equity Strategy stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q2 2024 investor letter:
“Generative AI’s hunger for power has increased disproportionately with its intelligence. According to one estimate, OpenAI’s GPT-4 required 50 gigawatt hours (GWh) of electricity to train, much more than the 1.3 GWh needed for GPT-3.3 And then AI requires even more power when it is put to use (so called ‘inference’). Some of the latest trends worry us. Microsoft Corporation (NASDAQ:MSFT) appears to be slipping in its ESG goals, with its greenhouse gas emissions rising again last year, as it invests in becoming a big player in AI. It is struggling in particular to curb its Scope 3 emissions in the capital goods category – nowhere more so than in the activity associated with the construction of data centres: both the embedded carbon in construction materials like steel and cement, as well as the emissions from the manufacturing of hardware components such as semiconductors, servers and racks. Google’s emissions have risen by close to 50% in the past five years.
We feel it is worth dwelling on Microsoft for a few moments, since we suspect you will be hearing a lot more about the relationship between AI and sustainability in the coming months. The bottom line is that we continue to see Microsoft as a sustainability leader. In the case of Scope 2 emissions, the company covers 100% of its electricity use with purchases of renewable energy. Crucially, though, the majority of this green energy is directly sourced via power purchase agreements, which bring new renewable capacity to the grid. Microsoft is also committed to operating 24/7 on renewable power by 2030, a policy that will help bring energy storage onto the grid as well…” (Click here to read the full text)
6. Qualcomm Inc. (NASDAQ:QCOM)
Average Upside Potential: 20.63%
Number of Hedge Fund Holders: 100
Qualcomm Inc. (NASDAQ:QCOM) is a leading global technology company that designs and develops semiconductors and wireless technologies, best known for mobile chipsets, which are used in smartphones and other mobile devices worldwide. Its technologies power the connectivity of billions of devices and are essential for the development of the 5G network. In addition to mobile, it also provides solutions for automotive, IoT, and computing applications.
The company reported strong FQ3 2024 results, with revenue up 11.24% to $9.39 billion. Licensing revenue reached $1.4 billion. This quarter saw AI-powered PC chip launches and Networking Elite platform introduction. Partnerships with STMicroelectronics solidify its AI leadership.
Its AI-powered laptops are available in over 60 retailers in 25 countries. The Snapdragon 8 Gen 3 chip enables smartphones to perform complex AI tasks. Microsoft’s Surface Laptop and Surface Pro will feature Qualcomm chips, allowing for offline AI capabilities. The company’s smartphone market share in China increased by over 40% in H1 2024. Microsoft’s collaboration on Copilot+ PCs, starting at $700, will further expand AI-powered laptop options.
Qualcomm Inc. (NASDAQ:QCOM) acquired parts of Sequans, a French IoT chipmaker, in late August 2024. This move strengthens its IoT solutions, offering improved connectivity and power efficiency. Sequans also benefits from increased investment in its IoT business. Its strategic position is reinforced by its AI technologies and expansion in the automotive and IoT sectors. The company’s partnership with Honeywell, a defense company, involves developing an AI tool for mobile devices using Qualcomm Inc. (NASDAQ:QCOM) chips. This tool will enable voice, picture, and barcode-based interactions for workers and customers in stores and warehouses.
The company’s strategic acquisitions and partnerships in AI and IoT position it for continued growth and market leadership. Its innovative technologies and strong financial position make it a promising investment option.
O’keefe Stevens Advisory stated the following regarding QUALCOMM Incorporated (NASDAQ:QCOM) in its Q2 2024 investor letter:
“During the quarter, the A.I. rally broadened beyond the obvious players of Nvidia, AMD, and hyperscalers. QUALCOMM Incorporated (NASDAQ:QCOM), a long-standing investment, is gaining recognition for integrating artificial intelligence into mobile phones. Qualcomm’s A.I. on-device capabilities enable real-time language translation, improved voice recognition, and sophisticated imaging techniques as A.I. becomes more integral to mobile experiences. Qualcomm benefits by leading the market in providing robust, efficient, and versatile A.I. solutions. A.I. could be the first technology advancement in several years to accelerate the smartphone replacement cycle as users desire these advanced capabilities.”
5. Advanced Micro Devices Inc. (NASDAQ:AMD)
Average Upside Potential: 21.30%
Number of Hedge Fund Holders: 108
Advanced Micro Devices Inc. (NASDAQ:AMD) specializes in manufacturing semiconductor devices used in computer processing. It also produces flash memories, graphics processors, motherboard chipsets, and various components used in consumer electronics goods. Its Ryzen processors are known for their performance and efficiency, while the Radeon GPUs are popular for their gaming capabilities and professional applications.
The company’s Instinct MI300X AI accelerators offer a competitive price-to-performance ratio. Launched in 2023, the MI300 Series competes directly with Nvidia’s H100. Its Q2 2024 revenue grew 8.88%, driven by higher Instinct, Ryzen, and EPYC sales. Data center revenue grew 49% year-over-year, and Ryzen CPU sales increased 49%. Gaming revenue declined 59%, but Radeon 6000 GPUs saw increased sales. Net income grew 881% year-over-year.
Advanced Micro Devices Inc. (NASDAQ:AMD) launched an AI-backed smart parking solution earlier in July, improving vehicle license plate recognition, parking spot vacancy detection, and accident detection. In October, it introduced new processors for commercial PCs and high-performance computing solutions to meet the demands of the AI computing era.
On October 16, the company decided to team up with Intel to address the growing competition from ARM in the semiconductor industry. The collaboration aims to improve software compatibility across their x86-based chips, which have been facing challenges from ARM’s energy-efficient architecture and broader licensing model.
Its data center solutions, including EPYC CPUs, Instinct GPUs, and Pensando DPUs, offer advanced performance, energy efficiency, and scalability for AI, cloud, and technical computing. The leadership in AI-driven data center solutions is evident in its partnerships with major tech giants. With products like the 5th Gen EPYC processors, The company is well-positioned to capitalize on the growing demand for high-performance computing and AI technologies.
Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q2 2024 investor letter:
“Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) lagged the market after the company reported earnings results that, while generally strong, left the market wanting more. The company reported AI revenue of ~$600 million and increased its forward-looking outlook for AI revenue growth, but shares took a breather, as results missed elevated expectations after the stock’s strong performance. Despite the stock’s underperformance during the quarter, the company’s AI story remains very much intact. The growth outlook for the company is supported by better cloud demand, enterprise recovery and continued share gains ahead of the company’s new AI product launch.”
4. Alphabet Inc. (NASDAQ:GOOGL)
Average Upside Potential: 23.59%
Number of Hedge Fund Holders: 216
Alphabet Inc. (NASDAQ:GOOGL) is a multinational technology conglomerate that holds a majority stake in Google. It was formed in 2015 to manage various businesses, including Google Search, Google Cloud, YouTube, Waymo, Verily, and X. It focuses on innovation and organizing the world’s information, making it universally accessible and useful.
The company’s Waymo division has 700+ cars operating in San Francisco alone, offering robotaxi services in multiple cities. Despite facing criticism for fires, crashes, and traffic violations, Waymo has achieved 100,000 robotaxi rides in San Francisco, Los Angeles, and Phoenix. YouTube Ads and Google Cloud are projected to reach a $100 billion revenue run rate by the end of 2024.
Google Cloud revenue increased by 28.8% in Q2, surpassing $10 billion and $1 billion in quarterly revenue and operating profit. This contributed to a 13.59% overall revenue growth, totaling $84.74 billion. Net income was $23.6 billion. Google’s ad revenue increased from $42.6 billion to $48.5 billion in Q2, accounting for almost 60% of Alphabet Inc.’s (NASDAQ:GOOGL) Q2 sales. Besides Google, Alphabet owns YouTube, the world’s second-largest website. YouTube’s ad sales increased to $8.7 billion.
AI infrastructure and GenAI tools have generated billions in revenue year-to-date and are now used by over 2 million developers. Google dominates the search engine market with approximately 91.06% and plans to invest $50 billion in AI initiatives by the end of 2024. AI technologies enhance user engagement and advertising efficiency on platforms like YouTube and search. Despite competition from new chatbots, its technological advantage in search has led to increased market share.
Despite the recent antitrust rulings, the company remains a financial powerhouse. Its strong financial position and positive analyst sentiment make it a promising investment option.
Patient Capital Opportunity Equity Strategy stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q2 2024 investor letter:
“Alphabet Inc. (NASDAQ:GOOGL) was a top contributor in the second quarter, finally catching up to its peers in the Magnificent 7. The company gained 20.8% in the period following strong first quarter earnings, a new $70B repurchase program (3% of shares outstanding) and the initiation of a cash dividend ($0.20 per share; 0.42% yield). We continue to believe the market underappreciates Google’s exposure to AI with its Gemini model being integrated into search results, YouTube advertising and its cloud offering. We continue to think that the cloud players will be the AI winners in the long-term, with Google being well positioned to take advantage. While the company trades at 24x 2024 earnings, if you remove the money-losing and under-earning businesses, you realize that you are paying below a market multiple for the core Google business. We do not believe there are many other AI winners trading at such an attractive multiple.”
3. Adobe Inc. (NASDAQ:ADBE)
Average Upside Potential: 24.99%
Number of Hedge Fund Holders: 107
Adobe Inc. (NASDAQ:ADBE) is a global software company that provides a range of creative tools and digital marketing solutions and is best known for its Adobe Creative Cloud suite, which includes popular applications like Photoshop, Illustrator, InDesign, Premiere Pro, and After Effects. These tools are used for graphic design, photography, video editing, and web development, among other use cases.
The company’s 80%+ market share in graphic design reflects years of product development. In FQ3 2024, total revenue grew 10.59% from a year-ago period, with Digital Media and Digital Experience segments increasing by 12%, with total subscription revenues representing 96% of total revenue. The company’s profitability improved with operating income increasing 17% year-over-year and net income increasing 20%. AI features like Adobe Firefly have enhanced customer engagement and retention. Document Cloud sales reached $807 million in FQ3 2024, up 18%.
It is monetizing GenAI innovations through strategies like embedding AI into existing products, offering add-ons, tiered offerings, and stand-alone AI services, as told by CFO Dan Durn. While it has made progress in integrating AI into its Creative Cloud, Document Cloud, and Experience Cloud businesses, investors are concerned about the company’s ability to translate these innovations into significant revenue growth. The stock price has fluctuated in recent months, reflecting both optimism about its AI potential and concerns about its financial performance. The recent MAX conference showcased innovative new products that solidify their unique position in AI-powered content creation.
The company’s strong brand and subscription-based business model generate high-margin revenue. While economic conditions impact subscriptions, the focus on AI products and services has driven growth. Despite recent setbacks, Adobe Inc.’s (NASDAQ:ADBE) long-term prospects remain positive, supported by its AI innovations and strong market position.
Polen Global Growth Strategy stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its Q2 2024 investor letter:
“With Adobe Inc. (NASDAQ:ADBE), in some ways, we see it as a microcosm of the market’s “shoot first, ask questions later” approach to categorizing AI winners and losers. In the early part of last year, Adobe came under pressure with a perception that generative AI (GenAI) would represent a material headwind to their suite of creative offerings. In short order, the company introduced its GenAI offering, Firefly, which shifted the narrative to Adobe as a beneficiary with a real opportunity to monetize GenAI in the near term. Earlier this year, that narrative was again challenged as the company reported a slight slowdown in revenue growth. Results in the most recent quarter were robust as the company raised its full-year forecast across a number of key metrics and showcased better-than-expected results.”
2. Merck & Co. Inc. (NYSE:MRK)
Average Upside Potential: 25.53%
Number of Hedge Fund Holders: 96
Merck & Co. Inc. (NYSE:MRK) is a global pharmaceutical company that develops, manufactures, and markets prescription medicines and vaccines. It has a strong focus on research and development, and its products are used to treat a wide range of diseases, including cancer, cardiovascular diseases, infectious diseases, and autoimmune disorders.
Q2 2024 revenue increased by 7.16% year-over-year. The Human Health segment saw 11% growth, Animal Health grew by 6%, and KEYTRUDA sales surged by 21%. Vaccines like GARDASIL and VAXNEUVANCE experienced growth of 4% and 16%, respectively. Merck secured FDA approval and ACIP recommendation for its new pneumococcal conjugate vaccine, CAPVAXIVE, for adults. Additionally, WINREVAIR, a vaccine for adult patients with pulmonary arterial hypertension, was approved and generated over $70 million in sales during the quarter.
The company expanded its presence in animal health by acquiring Elanco’s aqua business and entered the ophthalmology market through the acquisition of EyeBio, aiming to develop treatments for retinal conditions. As October began, it completed the acquisition of CN201, a bispecific antibody for the treatment of B-cell-associated diseases. It’s being investigated in clinical trials for NHL and ALL.
The company’s CAPVAXIVE, a new Pneumococcal 21-valent Conjugate Vaccine, is showing promising results in protecting adults from pneumococcal disease. The vaccine demonstrated strong immune responses and was well-tolerated in clinical trials. It is designed to cover a broader range of pneumococcal serotypes than existing vaccines, providing additional protection for adults at high risk.
It’s poised for continued growth due to its international expansion, diverse drug portfolio, and strong financial results. The acquisition of Harpoon Therapeutics is expected to strengthen its oncology pipeline and create opportunities for new combination therapies. Hence, Merck & Co. Inc. (NYSE:MRK) is rather well-positioned for success.
Oakmark Equity and Income Fund stated the following regarding Merck & Co., Inc. (NYSE:MRK) in its Q3 2024 investor letter:
“Merck & Co., Inc. (NYSE:MRK) is a global pharmaceutical firm with leading oncology, vaccine and animal health franchises. Premier products in Merck’s portfolio include Keytruda, Gardasil, Winrevair and Bravecto. Outsized contributor Keytruda is an immuno-oncology drug that treats several cancers and tumors. Keytruda is an astounding clinical and commercial success that is on track to become one of the best-selling prescription drugs to date. Investor angst surrounding Keytruda’s pending U.S. patent expiration in 2028 presented a chance to buy shares at a discounted valuation. We believe opportunities to extend Keytruda’s duration through life cycle management are underappreciated. More importantly, discounted cash flows from products already on market cover today’s entire stock price, meaning there is minimal value ascribed to a promising pipeline with strong sales potential. We believe Merck is led by a capable management team that looks to reinvest these cash flows in an accretive manner.”
1. Micron Technology Inc. (NASDAQ:MU)
Average Upside Potential: 39.00%
Number of Hedge Fund Holders: 120
Micron Technology Inc. (NASDAQ: MU) is a global semiconductor company that designs, manufactures, and sells memory and storage solutions, with a primary focus on DRAM and NAND flash memory (accounting for 69% and 31%), which are essential components in a wide range of electronic devices. Its products are used in applications that require high-performance, high-capacity memory and storage solutions.
The company recently launched a new high-performance SSD with up to 2TB capacity and 7,100/6,000 MB/s read/write speeds. Its revenue surged 93.27% in the fourth fiscal quarter of 2024, driven by strong NAND and storage demand. Overall, in the fiscal year 2024, it grew its revenue by 62%. Its 16Gb LP5 DRAM has been qualified for the automotive market, supporting AI advancements. Despite market adjustments, the company expects automotive growth to resume in the second half of fiscal 2025.
It recently launched new high-speed memory (CUDIMM and CSODIMM) for next-generation PCs, especially AI models. These modules are twice as fast as DDR4 and are validated by Intel for their Core Ultra processors. The new memory offers faster downloads, and better refresh rates, and is expected to be a big leap for future PCs.
The company’s bullish outlook is driven by its strategic focus on the AI and data center markets. While it faces challenges in the smartphone and PC segments, its strong leadership in process technologies and growing revenue in high-demand sectors position it for significant long-term growth. The CEO’s positive outlook and forecast for record revenue and increased profitability in the coming quarters highlight Micron Technology Inc.’s (NASDAQ:MU) promising future.
Baird Chautauqua International and Global Growth Fund stated the following regarding Micron Technology, Inc. (NASDAQ:MU) in its Q3 2024 investor letter:
“After Micron Technology, Inc.’s (NASDAQ:MU) price appreciated 54% in 1H24, investors became anxious about potential memory weakness, less clear cyclical recovery pace, and whether competitor Samsung will act rationally with capacity expansion. We maintain our long-term positive view on the industry’s demand/supply situation. We believe Micron is well positioned in technology capability, and that its margins will continue to improve.”
While we acknowledge the growth potential of Micron Technology Inc. (NASDAQ:MU), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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