In this article, we will discuss the top 5 stocks to buy in 2021 according to Guy Spier’s Aquamarine Capital. If you want to read our detailed analysis of Spier’s history, investment philosophy, and hedge fund performance, go directly to the 10 Stocks to Buy in 2021 According to Guy Spier’s Aquamarine Capital.
5. Micron Technology, Inc. (NASDAQ:MU)
Spier’s Stake Value: $16,996,000
Percentage of Guy Spier’s 13F Portfolio: 7.97%
Number of Hedge Fund Holders: 87
Micron Technology, Inc. (NASDAQ:MU) is a computer memory and data storage company in the United States. Its products include dynamic random-access memory, flash memory, and USB flash drives. It ranks fifth on our list of 10 stocks to buy in 2021 according to Guy Spier’s Aquamarine Capital.
On September 29, Wedbush analyst Matt Bryson lowered his price target on Micron Technology, Inc. (NASDAQ:MU) to $85 from $105 and maintained a “Neutral” rating on the shares post fourth-quarter results.
Arrowstreet Capital is the most significant shareholder of Micron Technology, Inc. (NASDAQ:MU) with 14.86 million, worth $1.26 billion. The hedge fund chaired by Guy Spier holds 200,000 shares in Micron Technology, Inc. (NASDAQ:MU) worth $17 million.
In its first-quarter 2021 investor letter, Bonsai Partners mentioned Micron Technology, Inc. (NASDAQ:MU). 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?”
