15 Best Stocks to Buy According to Hosking Partners

Page 12 of 13

2. Micron Technology Inc (NASDAQ:MU)

Hosking Partners’ Stake Value: $98,559,243

Percentage of Hosking Partners’ 13F Portfolio: 3.64%

Number of Hedge Fund Holders: 120

Micron Technology, Inc. (NASDAQ:MU) originally specialized in designing and manufacturing DRAM for PCs before expanding into the NAND flash memory market. The company’s management expects to generate “several hundred million dollars” in revenue from high-bandwidth memory (HBM) in FY24 and is optimistic about earning “multiple billions of dollars” in FY25. Micron has already sold out its HBM capacity for this year and the next.

The company is now focused on increasing its market share in the HBM segment by expanding its customer base and developing more efficient HBM chips. The growth in HBM is closely linked to the rising demand for AI chips, which could drive earnings growth for Micron.

A rebound in memory prices and favorable inventory conditions have also contributed to Micron’s strong revenue performance. In Q3 2024, the company reported a 17% sequential revenue growth, reaching $6.81 billion, surpassing its guidance, driven by strong AI demand and effective execution. On June 25th, Rosenblatt Securities issued a “Buy” rating for Micron’s shares, with a price target of $225.00.

Micron Technology Inc. (NASDAQ:MU) is witnessing increased profitability due to strong demand for its memory and storage products. The company exceeded profit expectations for Q3 2024, with sales surging, and plans to increase capital expenditures to meet the growing demand. Furthermore, Micron Technology Inc (NASDAQ:MU) is investing heavily in high bandwidth memory (HBM) production that is expected to generate billions in sales by fiscal 2025 compared with just hundreds of millions in 2024.

After the earnings, Bank of America analyst Vivek Arya reiterated a Buy rating and gave a $170 price target on Micron Technology Inc (NASDAQ:MU).

“Management emphasized both CY24 and CY25 volumes are now fully sold out with pricing generally secured, providing visibility to its healthy sales and margin expansions (HBM is GM accretive),” Arya said.

ClearBridge Value Equity Strategy stated the following regarding Micron Technology, Inc. (NASDAQ:MU) in its Q2 2024 investor letter:

“Stock selection in the IT sector proved to be the largest contributor to performance, particularly driven by the strong performance of Micron Technology, Inc. (NASDAQ:MU) The company, which designs, develops, manufactures and sells memory and storage products, continued its strong performance alongside other AI beneficiaries as the anticipated demand for new and additional storage essential for housing and training large language AI models continues to grow.”

Page 12 of 13