10 Most Undervalued AI Stocks to Buy According to Analysts

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

P/E Ratio: 10.89

No. of Hedge Fund Investors: 96

Analyst Upside: 24.08%

Micron Technology, Inc. (NASDAQ:MU) is one of the 10 Most Undervalued AI Stocks to Buy According to Analysts. On June 26, Rosenblatt Securities raised the price target on MU from $172 to a Street-high of $200, reiterating a Buy rating on the stock.

Kevin Cassidy from Rosenblatt Securities raised the price target on Micron Technology, Inc. (NASDAQ:MU) following strong Q3 2025 results. The company’s revenue hit a quarterly record of $9.3 billion, up 37% year-over-year, and surpassed consensus by almost $450 million. The strong revenue was driven by ongoing strength in data center markets and robust quarter-over-quarter growth across consumer-facing segments. The company saw a record-high DRAM revenue, with almost 50% sequential growth in HBM sales. Micron’s adjusted gross margin soared to 39% in Q3, while the adjusted earnings of $1.91 surpassed consensus by $0.31.

“The combination of AI applications driving DRAM demand and Micron’s leading power efficiency drove revenue, gross margin, operating margins, and profits well above Street expectations,” said Cassidy. “Outlook is for more of the same. With DRAM wafer capacity expansion over 18 months away, we see this cycle driving Micron’s income model to all-time highs. We continue recommending MU shares for the relatively low valuation, 12x fP/E, strong balance sheet, expanding margins, and earnings leverage.”

Micron Technology now expects Q4 FY2025 to post similar results with an equally upbeat outlook. The revenue for the ongoing quarter is expected to be around $10.4 billion and $11 billion.

Micron Technology, Inc. (NASDAQ:MU) is a leading player in the AI industry as the company develops high-performance memory and storage solutions, such as DRAM and NAND. These are important devices used for running and training AI models across data centers, consumer electronics, and edge devices.