Is Micron Technology (MU) Stock a Buy For 2021?

Bonsai Partners recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 247% for the quarter (net of fees), outperforming their benchmark, the S&P 500 Index which returned 18.4% in the same quarter. You should check out Bonsai Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the Q4 2020 Investor Letter, Bonsai Partners highlighted a few stocks and Micron Technology Inc (NASDAQ:MU) is one of them. Micron Technology Inc (NASDAQ:MU) is a technology company. In the last three months, Micron Technology Inc (NASDAQ:MU) stock gained 48.1% and on February 3rd it had a closing price of $79.11. Here is what Bonsai Partners said:

“Micron is a manufacturer of memory semiconductor chips. Micron’s stock appreciated 60.1% during the quarter.

Micron’s shares significantly appreciated this quarter for a couple of reasons. First, and most importantly, the DRAM market appears to have begun its cyclical rebound. As a result, we will likely see higher pricing and profitability through at least the calendar year 2021, hopefully meaningfully longer.

Another (and less meaningful) driver wasthat semiconductor stocks have become ‘en vogue’ once again. I may not be old, but I’ve been around the sector long enough to know that when generalists start getting excited about a ‘new paradigm’ around semiconductors, it’s time to be wary.

I wouldn’t call Micron overvalued, but I’d certainly say it’s more fairly priced today compared to when we first purchased it a few months ago.”

NXP Semiconductors NXPI

Earlier today, we published an article revealing that Micron Technology Inc (NASDAQ:MU) stock was one of the top 10 holdings of billionaire Ken Griffin.

In Q3 2020, the number of bullish hedge fund positions on Micron Technology Inc (NASDAQ:MU) stock decreased by about 6% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in MU’s growth potential. Our calculations showed that Micron Technology Inc (NASDAQ:MU) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

Disclosure: None. This article is originally published at Insider Monkey.