5 Technology Stocks To Buy That Are Too Cheap To Ignore

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

Share Price as of October 15, 2022: $52.40

Number of Hedge Fund Holders: 69

Micron Technology, Inc. (NASDAQ:MU) is one of the oldest chip companies in the world that designs, manufactures, and sells memory and storage products. These include DRAM, NAND, and SSD products. The company is headquartered in Boise, Idaho.

Micron Technology, Inc. (NASDAQ:MU) is a key technology stock not because of its revenue, or because of its key position in an industry with high barriers to entry, but because it is a heavy spender when it comes to capital expenditure. The company’s latest fiscal year saw it spend $12 billion in CapEx, which made up 39% of its revenue, and if we assume that next year the firm will spend between 37% and 40% in CapEx, then its revenue guidance turns out in between $20 billion and $25 billion. The company’s large spending is expected to pay off in the future.

Additionally, and crucially, Micron Technology, Inc. (NASDAQ:MU) is also investing in extreme ultraviolet (EUV) systems to manufacture the 1-gamma node for memory. Loop Capital set a $70 share price target for the company in October 2022, stating that the risk/reward mix is great especially as Micron Technology, Inc. (NASDAQ:MU)’s current share price is an attractive entry point.

Insider Monkey’s Q2 2022 survey of 895 hedge funds saw 69 investors in the company. Micron Technology, Inc. (NASDAQ:MU) also pays an 11 cent dividend for a 0.87% yield.

Micron Technology, Inc. (NASDAQ:MU)’s largest investor is David Goel and Paul Ferri’s Matrix Capital Management which owns four million shares that are worth $221 million.

Claret Asset Management mentioned the company in its Q2 2022 investor letter. Here is what the fund said:

“Inflation is still higher than interest rates… not an incentive to save for most people. Either inflation must come down or interest rates have to go up further. Or both. And probably both. Now that they are taking the punch bowl away and the party is over, what happens next? For whatever reason, the stock market seems to always precede the economic reality: Micron reached a high of $98.45 on January 5th, 2022 and is trading at $50.00 today.”