5 Most Undervalued US Stocks According to Hedge Funds

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

Forward Price to Earnings Ratio: 12.43

Number of Hedge Fund Holders: 137

Micron Technology, Inc. (NASDAQ:MU) is one of the Most Undervalued US Stocks According to Hedge Funds. On May 18, Melius Research raised the firm’s price target on Micron Technology, Inc. (NASDAQ:MU) from $700 to $1,100 and maintained a Buy rating.

​The firm noted that they remain optimistic regarding their long-term conviction in memory chips and AI semiconductors, despite the fact that Trump’s recent visit to China produced no concrete developments for the sector. Melius has upgraded the estimates across all buy-rated “bottleneck stocks,” including Micron, Sandisk, AMD, Intel, and Marvell.

​However, the firm maintained a Hold rating for Qualcomm but updated the price target. The firm believes semiconductor companies will increasingly capture market capitalization and upside that currently resides in traditional software companies and non-semiconductor Magnificent 7 names over the long run.

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.

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