11 Most Profitable Cheap Stocks to Invest In Now

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

Forward P/E: 10.34

Profit Margin: 28.15%

Net Income: $11.91 Billion

Number of Hedge Fund Holders: 105

Micron Technology, Inc. (NASDAQ:MU) is one of the most profitable cheap stocks to invest in now. On January 23, HSBC increased its price target on Micron Technology, Inc. (NASDAQ:MU) from $350 to $500 and kept its Buy rating. The firm noted that the sharp rise in DRAM prices was a major reason behind the strong gains in the share price over the past three months.

HSBC now expects Micron Technology, Inc. (NASDAQ:MU) to report Q2 fiscal 2026 operating profit of $12 billion, which would be an increase of 88% quarter-over-quarter. The research firm forecasts sales of $20 billion, up 47% compared to the previous quarter. HSBC forecasts DRAM blended average selling prices to see a 45% increase quarter-over-quarter, up from its earlier forecast of 37%.

Earlier, on January 22, William Blair initiated coverage of Micron Technology, Inc. (NASDAQ:MU) with an Outperform rating. The firm believes that the company is in a strong position to see sharp profit growth as rising AI-driven demand meets ongoing supply constraints that could continue into 2027.

William Blair expects a multi-year upcycle in the memory market to support higher pricing and margins, primarily by high-bandwidth memory (HBM) used in AI accelerators. The firm noted that memory has become a bottleneck in AI systems, which is making customers shift toward higher-performance products that come with higher selling prices. William Blair forecasts Micron Technology, Inc.’s (NASDAQ:MU) non-GAAP EPS to grow by over 275% over the next two years.

Micron Technology, Inc. (NASDAQ:MU) is a leading semiconductor technology company that is known for its innovative memory and storage solutions. The company offers a portfolio of high-performance DRAM, NAND, and NOR memory and storage products.