Micron Technology (MU) Slid on Concerns Over Weak Demand

Parnassus Investments, an investment management company, released the “Parnassus Value Equity Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the Fund (Investor Shares) returned 7.28% (net of fees) underperforming the Russell 1000 Value Index’s 9.43% return. The Information Technology sector was the largest detractor, due to both stock selection and an overweight position. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Parnassus Value Equity Fund highlighted stocks like Micron Technology, Inc. (NASDAQ:MU), in the third quarter 2024 investor letter. Micron Technology, Inc. (NASDAQ:MU) designs, develops, manufactures, and distributes memory and storage products globally. The one-month return of Micron Technology, Inc. (NASDAQ:MU) was 10.77%, and its shares gained 31.75% of their value over the last 52 weeks. On December 16, 2024, Micron Technology, Inc. (NASDAQ:MU) stock closed at $108.26 per share with a market capitalization of $120.606 billion.

Parnassus Value Equity Fund stated the following regarding Micron Technology, Inc. (NASDAQ:MU) in its Q3 2024 investor letter:

“Micron Technology, Inc. (NASDAQ:MU), a memory and storage solutions company, underperformed due to worries about weak demand from personal computers and smartphones segments. Given memory’s importance to the development of AI and the growth of data centers, we believe Micron still has a strong runway for revenue growth and margin expansion.”

A close-up view of a computer motherboard with integrated semiconductor chips.

Micron Technology, Inc. (NASDAQ:MU) is in 16th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 107 hedge fund portfolios held Micron Technology, Inc. (NASDAQ:MU) at the end of the third quarter which was 120 in the previous quarter. 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 as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Micron Technology, Inc. (NASDAQ:MU) and shared the list of top AI stocks to watch. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.