5 Semiconductor Stocks to Watch as Uncertainty Grows

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

Number of Hedge Fund Holders: 69

Micron Technology, Inc. (NASDAQ:MU) is a leading semiconductor manufacturer that is most widely known for its memory and storage products. On September 1, Micron Technology, Inc. (NASDAQ:MU) announced that it will be investing roughly $15 billion by 2030 to construct a new leading-edge memory manufacturing plant in Idaho. This will ensure that the U.S. makes its own chips and reduce its dependence on exports to get chips for key end markets such as automotive and data centers.

Even though Micron Technology, Inc. (NASDAQ:MU) is committed to expanding its base in the U.S., the semiconductor giant is suffering from demand weakness. On August 9, Micron Technology, Inc. (NASDAQ:MU) cut its revenue guidance for the fiscal fourth quarter of 2022 to a range between $6.8 billion and $7.6 billion, after the chipmaker reported that demand for its DRAM and NAND has declined since its earnings call on June 30, 2022.

On August 9, Raymond James analyst Melissa Fairbanks downgraded Micron Technology, Inc. (NASDAQ:MU) to Outperform from Strong Buy and slashed her price target to $65 from $72. The analyst said that she sees near-term headwinds negatively impacting the stock, but she sees Micron Technology, Inc.’s (NASDAQ:MU) pricing power and technology advantages over peers to drive the company’s long-term growth.

At the end of Q2 2022, 69 hedge funds were long Micron Technology, Inc. (NASDAQ:MU) and held stakes worth $2.16 billion in the company. Of those, Matrix Capital Management was the top shareholder with stakes worth $221 million.