BofA’s List Of AI & Semiconductor Stocks That Fund Managers Love & Hate: 16 Stocks On The Manager Radar

10. Micron Technology Inc. (NASDAQ:MU)

Number of Hedge Fund Holders In Q2 2024: 100

Section: Losing Popularity

Micron Technology Inc. (NASDAQ:MU) is one of the biggest semiconductor manufacturers in the world. It is a pure-play memory manufacturer and commands a 19.6% share of the global memory market which makes it the third biggest memory company. Turmoil in the memory industry which has led to Samsung’s memory profit plunging by a stunning 95% in Q2 2023 has also affected Micron Technology Inc. (NASDAQ:MU)’s shares as they dropped by 43% between mid-June and early August. Yet, the firm’s integral nature in the advanced HBM3 and HBM3e memory markets has allowed it to defend against excessive share price drops. Micron Technology Inc. (NASDAQ:MU)’s stock is up 35% year to date, with the shares surging by 13% in late September after its Q4FY24 earnings report saw it guide the current quarter’s midpoint revenue at $8.7 billion which smashed analyst expectations of $8.28 billion. This was on the back of strong HBM3 demand, and consequently, these products are now baked into its hypothesis.

ClearBridge Investments mentioned Micron Technology Inc (NASDAQ:MU) in its Q2 2024 investor letter. Here is what the firm said:

“Quarterly Performance Stock selection in the IT sector proved to be the largest contributor to performance, particularly driven by the strong performance of Micron. The company, which designs, develops, manufactures and sells memory and storage products, continued its strong performance alongside other AI beneficiaries as the anticipated demand for new and additional storage essential for housing and training large language AI models continues to grow.”