5 Undervalued Large Cap Stocks to Buy

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

Stock Upside: 45.60%

Market Capitalization: $413.02 billion

Forward P/E: 6.30

Number of Hedge Fund Holders: 137

Micron Technology, Inc. (NASDAQ:MU) is one of the undervalued large cap stocks to buy. On April 6, KeyBanc Capital Markets senior analyst John Vinh reiterated an Overweight rating and $600 price target on Micron Technology, Inc. (NASDAQ:MU). Vinh cited a structural shift in how Micron is contracting with large cloud computing customers, or hyperscalers.

Vinh noted that Micron is establishing new long-term supply agreements with hyperscalers, which now include two critical protections that older contracts lacked. The first is pricing floors, that is, a minimum guaranteed price for memory products, and the second is upfront payments for capacity reservations. That means customers are essentially pre-paying Micron to hold production capacity for them. This shift, noted Vinh, fundamentally de-risks the stock and offers unprecedented earnings visibility in what has historically been a brutally cyclical industry.

Underpinning the near-term outlook, Vinh expects DRAM and NAND pricing to surge 30% to 50% quarter-over-quarter in Q2 2026. He expects this jump to be driven by tight supply conditions and surging AI server demand. However, he noted that price increases are expected to moderate from that level thereafter.

Meanwhile, on March 25, Micron announced cash tender offers to buy back any and all of six series of outstanding senior notes totaling up to $5.4 billion in principal. The offers expired six days later, on March 31, and were settled on April 3.

The six note series targeted were: 5.300% notes due 2031 ($1 billion), 5.650% notes due 2032 ($500 million), two series of 5.875% notes due 2033 ($750 million and $900 million), 5.800% notes due 2035 ($1 billion), and 6.050% notes due 2035 ($1.25 billion).

Holders who tendered their notes before the March 31 deadline were eligible to receive the purchase price. This price was based on a spread over a reference US Treasury security, plus any accrued and unpaid interest up to but not including the settlement date.

Micron Technology, Inc. (NASDAQ:MU) is a semiconductor company that designs, manufactures, and sells memory and storage products. These include DRAM, high‑bandwidth memory, NAND flash, and solid‑state drives for data center, mobile, automotive, and consumer markets.