5 Best Growth Stocks To Buy According To Ray Dalio

1. Micron Technology (NASDAQ:MU)

Number of Hedge Fund Holders: 87     

Micron Technology (NASDAQ:MU) is placed first on our list of 11 best growth stocks to buy according to Ray Dalio. The firm makes and sells memory and storage products and is headquartered in Idaho. According to the latest filings, Bridgewater Associates owned 216,148 shares in the company at the end of the second quarter of 2021 worth $18.3 million, representing 0.11% of the portfolio. 

On August 30, investment advisory Deutsche Bank maintained a Buy rating on Micron Technology (NASDAQ:MU) stock and lowered the price target to $95 from $110, noting that memory stocks were under pressure because of pricing concerns. 

At the end of the second quarter of 2021, 87 hedge funds in the database of Insider Monkey held stakes worth $6.3 billion in Micron Technology (NASDAQ:MU), down from 100 in the preceding quarter worth $7.6 billion.

In its Q1 2021 investor letter, Bonsai Partners, an asset management firm, highlighted a few stocks and Micron Technology (NASDAQ:MU) was one of them. Here is what the fund said: 

“Micron is a manufacturer of memory semiconductor chips. Micron appreciated 17.3% during the quarter.

With the semiconductor cycle in full swing, sentiment continued to improve for major DRAM and NAND suppliers. Spot pricing for DRAM continues its upward march due to supply shocks across the industry and sustained demand levels that continue to outstrip supply.

As a result, Micron showed improving results for the fiscal first quarter, raised guidance intra-quarter for the fiscal second quarter, and offered strong guidance for the fiscal third quarter in both growth and margins.

While the cyclical nature of DRAM hasn’t changed, the cycles themselves continue to become more benign, leading to long-term economic improvement across these businesses. Micron is now continuously profitable, with industry players in a dramatically stronger position than even just five years ago.

The biggest negative surprise in the quarter came from Micron’s exit from its 3D XPoint hybrid memory business. The company also announced its decision to sell its accompanying Utah fab. Fortunately, this development does not alter the investment thesis much since 3D XPoint was an option ticket for future growth. While it’s unfortunate this product didn’t pan out, now is an excellent time to sell a fab, so perhaps it is a blessing in disguise?”

You can also take a peek at 15 Dividend Stocks People Buy for Early Retirement and 10 Best Tech ETFs to Buy According to Reddit.

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