8 Most Undervalued Growth Stocks To Buy According To Wall Street Analysts

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

Forward P/E: 11.5

Earnings Growth: 587.70%

Number of Hedge Fund Holders: 120

Analyst Upside Potential: 41.81%

When it comes to growth stocks it is hard to miss companies specializing in memory and storage solutions. Micron Technology, Inc. (NASDAQ:MU) is one such company specializing in Dynamic Random-Access Memory (DRAM), NAND Flash Memory, and NOR Flash Memory.

The strategic edge of the company operates from the critical position it plays with its DRAM and NAND. It is one of the few makers of these memory storages which allows software applications on your devices.

The investment case for Micron Technology, Inc. (NASDAQ:MU) stays the same as it is for most storage solution companies. The Cloud and artificial intelligence technologies have led to a sustained demand for high demand for its digital memory. Moreover, on the DRAM side of its business, the company has only a few competitors which is easily overshadowed by the rising demand for memory solutions.

Management sounds optimistic about capitalizing on the growing demand and turning it into revenues and net income. CEO  Sanjay Mehrotra says the company is in the best competitive position in the company’s history.

If we look at the fiscal 2024 earnings results the claim of Sanjay does not seem far-fetched. Micron Technology, Inc. (NASDAQ:MU) grew its revenue for the year by 62% year-over-year to reach $25 billion. The revenue growth came in with significant gross margins of 22% which were impressive when compared to last year’s negative 9% margins.

Moving forward the company plans to allocate more than 35% of its fiscal first 2025 revenue to develop its fab construction. Using the capital management will upgrade its Idaho and New York fabs to cater growing demand for its DRAM.

Parnassus Value Equity Fund stated the following regarding Micron Technology, Inc. (NASDAQ:MU) in its Q2 2024 investor letter:

“Micron Technology, Inc. (NASDAQ:MU) posted fiscal-third-quarter results that met expectations. Micron’s DRAM (dynamic random access memory) and NAND (non-volatile storage technology) segments grew revenue strongly, continuing the company’s recovery from a cyclical downturn last year. We believe Micron is well positioned to capitalize on AI-driven demand for greater memory.”