Jim Cramer’s Latest Watchlist: 10 Stock Picks You Need to Know

2. Micron Technology Inc.(NASDAQ:MU)

Number of Hedge Fund Investors: 120

Jim Cramer points out that Micron Technology Inc. (NASDAQ:MU) is expected to earn $9.59 per share in its 2025 fiscal year, with projected earnings rising to nearly $13 per share the following year. Despite these strong earnings forecasts, Micron Technology Inc.(NASDAQ:MU)’s stock is currently trading at less than seven times the expected earnings for next year, which Cramer considers very low.

“Micron Technology Inc. (NASDAQ:MU) is now in its 2025 fiscal year, where it’s expected to earn $9.59, with that number growing to nearly $13 the following year. In other words, Micron Technology Inc. (NASDAQ:MU) is trading at less than 7 times next year’s fiscal earnings estimates. That’s insanely cheap—but remember, that often means people don’t believe in the estimates. That’s how it gets to seven times. I understand that, but I think the estimates are okay.”

Micron Technology (NASDAQ:MU) is a strong investment choice due to its leading role in the semiconductor memory market, especially in areas like AI and next-generation memory technologies. Micron Technology Inc.(NASDAQ:MU) excels in DRAM and NAND technologies, which are crucial for AI, autonomous vehicles, and data centers. In fiscal Q3 2024, Micron Technology Inc.(NASDAQ:MU) reported revenue of $6.81 billion, surpassing expectations due to high demand for AI products and strong performance.

Its non-GAAP earnings of $0.62 per share also exceeded forecasts. Key to its success are innovations like the 9th-generation NAND technology and PCIe Gen 6 SSDs, which are first-of-their-kind advancements for data centers. Although the memory industry is facing short-term challenges, analysts remain positive about Micron Technology Inc.(NASDAQ:MU)’s future. For instance, Susquehanna analyst Mehdi Hosseini notes that despite a “mid-cycle correction” in the memory market, Micron Technology Inc.(NASDAQ:MU) is well-positioned to benefit from changes in the DRAM sector and growing demand for AI-related memory.