Jim Cramer’s Game Plan for This Week: 8 Stocks in Focus

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

Number of Hedge Fund Holders: 107

Ahead of Micron Technology, Inc.’s (NASDAQ:MU) first-quarter fiscal 2025 earnings report on December 18, Cramer said:

“We have some big earnings reports on Wednesday… After the close, we hear from two bellwethers, there’s Micron, the semiconductor company, which you know I like very much, and Lennar, the huge home builder, which I also share affection for. Micron had a nice rally today and I think you can tell a good story about the entire line of chips after a period of subpar performance, not just the high bandwidth chips.”

Micron (NASDAQ:MU) is a company that specializes in designing, developing, and manufacturing memory and storage products. According to the company’s management, the demand outlook for dynamic random access memory (DRAM) in the calendar year 2024 has improved. This improvement is largely attributed to the strength in data center servers and consistent performance in other market segments, which aligns with prior expectations.

As a result, the company has raised its forecast for DRAM bit demand growth in 2024 to the high-teens percentage range. In addition, the company anticipates that NAND bit demand growth will remain steady in the mid-teens percentage range for the same year. Looking further ahead, it expects the bit demand growth for both DRAM and NAND flash memory in 2025 to be in the mid-teens percentage range as well.

For the first fiscal quarter of 2025, Micron (NASDAQ:MU) has projected revenue to be approximately $8.7 billion, with a margin of plus or minus $200 million. In terms of profitability, the company expects its gross margin to fall within a range of 39.5%, with a variation of plus or minus 100 basis points.

While we acknowledge the potential of Micron Technology, Inc. (NASDAQ:MU) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher 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.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.