20 Undervalued Momentum Stocks That Are Taking Off

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1. Micron Technology Inc. (NASDAQ:MU)

3-Month Price Change: 33.8%

Forward PE: 11.2

Number of Hedge Fund Holders: 96

Micron Technology Inc. (NASDAQ:MU) is one of the 20 undervalued momentum stocks that are taking off. As per Q3 2025 (FY ends in August) earnings results announced on June 25, the company delivered record revenue, with data center sales more than doubling year-over-year and DRAM revenue reaching an all-time high, driven by nearly 50% sequential growth in high-bandwidth memory (HBM). The compay generates strong free cash flows which support continued strategic investment, while a newly reorganized business structure aligns more closely with AI-driven demand.

Looking ahead, Micron expects 15% sequential revenue growth in the fourth quarter, reaching $10.7 billion. The company’s long-term potential is further reinforced by its recently announced $200 billion U.S. investment plan, focused on manufacturing and R&D to support sustained leadership in memory and storage innovation.

Following Micron’s May quarter results on June 26, JP Morgan analyst Jay Kwon raised the stock’s price target to $165 from $135 while maintaining an Overweight rating. In his recent note, Kwon called the quarter as solid and pointed to a strong outlook for the upcoming quarter.

The primary reason for the improved sentiment is growing demand in key areas, especially the high-bandwidth memory (HBM) and data center products. Kwon also highlighted continued strength in consumer-related applications, which contributed to the company’s overall performance.

As a result, the analyst raised its earnings estimates for Micron, and sees a favourable setup for the stock in the second half of 2025, supported by improving fundamentals and a constructive demand environment.

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 as an investment, 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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Disclosure: None.

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