15 Undervalued Momentum Stocks That Are Taking Off

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1. Micron Technology Inc. (NASDAQ:MU)

Number of Hedge Fund Holders: 105

According to a February 9 report, TD Cowen raised its long-term earnings outlook for Micron Technology Inc. (NASDAQ:MU). The firm now expects that MU’s EPS may reach as much as $60 in 2026, above its prior bull-case assumption of $50. The revision reflects the firm’s view that structural supply capacity issues in the DRAM market are likely to persist for multiple years. This implies that the company may continue to witness stronger pricing and margin development, better than previously anticipated.

TD Cowen outlines a “gradual re-rating path” toward a 12x multiple applied to a normalized earnings base of roughly $50 per share, which underpins its longer-term upside thesis. According to the firm’s estimates, better-than-expected earnings growth could lead to a stock price of $600 over time.

Micron Technology Inc. (NASDAQ:MU) received a further boost when its management strongly backed its HBM4 product at Wolfe Research’s Autos/Semis conference on February 11. Notably, the leadership said they expect to start shipping the product in the current quarter rather than next, as previously guided. They also mentioned that demand is “significantly higher” than its supply capacity, thus underpinning demand trends beyond 2026.

The performance of Micron Technology Inc. (NASDAQ:MU) shares has been stunning, with 240% returns in 2025 and 50% rally so far in 2026. The stock currently trades 6% below its 52-week high of $455.5.

Micron Technology Inc. (NASDAQ:MU) designs, develops, manufactures, and markets memory and storage products, including dynamic random-access memory (DRAM), flash memory (NAND), solid-state drives (SSDs), and High Bandwidth Memory (HBM) globally.

While we acknowledge the potential of MU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MU and that has 100x upside potential, check out our report about this cheapest AI stock.

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