3. Micron Technology, Inc. (NASDAQ: MU)
Robertson’s Stake Value: $39,368,000
Percentage of Julian Robertson’s 13F Portfolio: 7.74%
Number of Hedge Fund Holders: 100
Micron Technology, Inc. (NASDAQ: MU) is a manufacturer of memory and storage products across the globe and some of its famous brands include Micron and Crucial. The company ranks 3rd on our list of the best tech stocks to buy according to Julian Robertson.
This May, according to DigiTimes sources, DRAM memory contract prices rose more than 20% and are expected to increase by 10-20% more in coming quarters, and Micron Technology, Inc. (NASDAQ: MU), being the world’s third-largest DRAM company, is set to benefit from the rise.
100 hedge fund holders held stakes in Micron Technology, Inc. (NASDAQ: MU) as of Q121, worth over $7.6 billion, and although the number of holders stayed the same between quarters, the stake value decreased from the Q420 value of $8.14 billion. Tiger Management holds 446,300 shares in the company worth $39 million. Like Microsoft Corporation (NASDAQ: MSFT), Facebook, Inc. (NASDAQ: FB), and Alphabet Inc. (NASDAQ: GOOG), Micron Technology, Inc. (NASDAQ: MU) is a tech stock worth investing in.
In its Q1 2021 investor letter, Bonsai Partners highlighted a few stocks and Micron Technology Inc (NASDAQ:MU) is 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?”
