13 Cheap AI Stocks to Buy According to Analysts

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

Number of Hedge Fund Holders: 94

Average Upside Potential: ~40.2%

Forward P/E as of May 12: ~8.20x

Micron Technology, Inc. (NASDAQ:MU) is a leading contender in the AI industry as the company manufactures high-performance memory and storage solutions, like DRAM and NAND. These are important for running and training AI models across edge devices, data centers, and consumer electronics. Micron Technology, Inc. (NASDAQ:MU) has announced a market segment-based reorganization of its business units so that it can capitalize on the evolutionary growth fueled by AI, from data centers to edge devices. The 4 business units will be: Cloud Memory Business Unit (CMBU), Core Data Center Business Unit (CDBU), Mobile and Client Business Unit (MCBU), and Automotive and Embedded Business Unit (AEBU).

Micron Technology, Inc. (NASDAQ:MU) expects fiscal Q3 2025 revenue to be another record, fueled by shipment growth throughout both DRAM and NAND. The company expects a combination of AI data center demand and the ramp of HBM, and its associated trade ratio, will result in tightness at the leading edge and constrain the non-HBM DRAM supply. Talking about the Data Center, Micron Technology, Inc. (NASDAQ:MU) expects mid-single digit server unit growth in calendar 2025, while witnessing growth in traditional and AI servers. Since macro headwinds will not impact the core demand trends in data center infrastructure and AI-driven memory needs continue to accelerate, the company is well-placed to benefit from the secular tailwinds.

Delaware Funds by Macquarie, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:

“Micron Technology, Inc. (NASDAQ:MU) – Fundamentals here also appear solid though concern about global demand for handsets and PCs drove the shares down during the quarter. We expect Micron to be a significant beneficiary of growth in AI demand as investment in new data centers is extremely memory (semiconductor) intensive.”

While we acknowledge the potential of MU as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than MU but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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