5 Best Undervalued Stocks to Buy According to the Financial Media

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1. Micron Technology, Inc. (NASDAQ:MU)

Forward P/E: ~9.3x

Number of Hedge Fund Holders: 154

Micron Technology, Inc. (NASDAQ:MU) is one of the Best Undervalued Stocks to Buy According to the Financial Media. On May 28, DA Davidson lifted its price objective on the company’s stock to $1,500 from $1,000 and kept a “Buy” rating on the shares. The firm’s analyst compared the CPU and memory markets in a bid to assess why AMD and Intel are currently trading at more than ~40x earnings, while Micron Technology, Inc. (NASDAQ:MU) trades at ~9x earnings. This is despite the fact that Micron’s stock saw a strong rally.

The analyst highlighted that the conventional wisdom holds that CPUs are not commodities while memory is a commodity. This means that memory is purchased in the spot market and remains fungible. However, this might be true in the past, but the codesign of HBM into data center architecture seems to be changing this dynamic, added the analyst. Also, the long-term deals are contributing to the change.

Micron Technology Inc. (NASDAQ:MU) provides memory and storage solutions sold into client, cloud server, enterprise, graphics, networking, smartphone, mobile-device, automotive, industrial, and consumer markets, among others.

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 the cheapest AI stock.

READ NEXT: 10 Best FMCG Stocks to Invest In According to Analysts and 11 Best Long-Term Tech Stocks to Buy According to Analysts.

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