We recently published a list of 10 Best Very Cheap Stocks To Buy Right Now. In this article, we are going to take a look at where Micron Technology, Inc. (NASDAQ:MU) stands against other best very cheap stocks to buy right now.
The stock market had a mixed start to 2025 as the Chinese Deepseek AI model has put the U.S. AI giants on the back foot. However, the tech-heavy NASDAQ 100 index made a recovery after taking a hit and has surged over 5% year-to-date. In addition, the S&P 500 index has gained just over 4% so far in 2025.
READ ALSO: 10 Best Cheap Technology Stocks To Buy According to Analysts
Goldman Sachs Research’s chief US equity strategist, David Kostin, expects the US tariffs to negatively impact the S&P 500 EPS in 2025. Kostin cited that every five-percentage-point increase in the US tariff rate will reduce S&P 500 EPS by roughly 1-2%.
If the U.S. administration continues with the proposed tariff rates, a 25% tariff on imported goods from Mexico and Canada and an additional 10% tariff on imports from China would reduce S&P 500 EPS forecasts by approximately 2-3%, as per Goldman’s Research.
With the potential market risks and tariff threat from the Trump administration, cheap stocks with strong fundamentals can be a good option for investment.
At first glance, the market may seem overvalued, with the S&P 500 trading close to all-time highs, driven by tech giants and leading consumer stocks. However, some stocks have missed the broader market rally amid temporary challenges. These stocks have attractive forward P/E ratios and proven growth records.
Our Methodology
We used the Finviz screener to compile a list of 30 cheap stocks with a forward P/E ratio of under 15. We shortlisted the 10 best very cheap stocks to buy now based on the highest potential upside according to average analyst estimate, as of February 17. The very cheap stocks are ranked in ascending order of the average analyst upside.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close-up view of a computer motherboard with integrated semiconductor chips.
Micron Technology, Inc. (NASDAQ:MU)
P/E Ratio: 13.55
Average Analysts Upside: 26.11%
Micron Technology, Inc. (NASDAQ:MU) designs, manufactures, and sells memory and storage products worldwide. The company offers DRAM, NAND flash memory, and other storage solutions under the Micron and Crucial brands, serving markets for data centers, PCs, graphics, networking, automotive, industrial, and mobile devices. Micron’s memory chips are its strong suit and an essential component of the AI boom. The company’s high-bandwidth memory (HBM) chips are especially suited to AI uses.
In February 2024, Micron Technology, Inc. (NASDAQ:MU) partnered with NVIDIA to provide its HBM3e chips to use in its AI-capable semiconductors. Lately, Micron’s HBM4 was allocated for use in NVIDIA’s upcoming Rubin platform. MU states that its HBM chips can match or exceed the performance of its peers while consuming 30% less power. This adds to the company’s competitive edge in the growing AI chip manufacturing market.
On February 12, Citi analysts reiterated MU stock with a Buy rating and kept the target price at $150. The firm remains positive on Micron Technology, Inc.’s (NASDAQ:MU) prospects. The company’s capabilities in AI High-Bandwidth Memory (HBM) and the potential in this segment provide a growth opportunity for MU. The analyst also cited the DRAM market’s recovery as a key factor in the company’s optimism.
Overall, MU ranks 3rd on our list of best very cheap stocks to buy right now. While we acknowledge the potential of MU to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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.
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Disclosure: None. This article is originally published at Insider Monkey.