Jefferies’ Top Crowded Semiconductor Short Positions: Top 10 Stocks

4. Micron Technology Inc. (NASDAQ:MU)

Number of Hedge Fund Holders In Q2 2024: 100

Shares Short % Of Outstanding: 3.08%

Micron Technology Inc. (NASDAQ:MU) is the third largest and the only pure-play memory manufacturer on our list. Its products are used alongside CPUs and GPUs for storage information immediately required for computing. High-end memory products sold under the HBM3 and HBM3e branding have become quite popular due to their use in AI products. They are responsible for most of Micron Technology Inc.’s (NASDAQ:MU) 30.94% year-to-date share price gains since the broader memory industry has struggled to recover. The scale of the memory slowdown’s impact on its business is clear. This is because Micron Technology Inc. (NASDAQ:MU) is yet to recover to its 2022 levels. During the firm’s fiscal year 2024, it earned $25.1 billion in revenue, an 18.5% drop over 2022’s $30.8 billion. 70% of the firm’s revenue comes through DRAM memory, making it important that it continues to execute with its HBM3e memory. Micron Technology Inc. (NASDAQ:MU) enjoys advantages over others because of its superior manufacturing technologies and has generated interest in its products among big-ticket AI players like NVIDIA.

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.”