Jim Cramer Likes These 3 Beaten-Down Semiconductor Stocks

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

Number of Hedge Fund Holders: 78

Micron Technology, Inc. (NASDAQ:MU) is a leading semiconductor manufacturer that designs, manufactures, and sells memory and storage products worldwide. The company operates through four segments: Compute & Networking Business Unit, Mobile Business Unit, Storage Business Unit, and Embedded Business Unit. Micron Technology, Inc. (NASDAQ:MU) is trading at bargain levels. As of July 22, the stock has a trailing twelve-month PE ratio of 6.99 and is offering a forward dividend yield of 0.73, which the company supports with its free cash flows of $4.81 billion.

On July 6, Micron Technology, Inc. (NASDAQ:MU) announced that its DDR5 server DRAM is now available for commercial and industrial use. The company’s next-generation DDR5 memory provides up to an 85% increase in system performance for artificial intelligence and high-performance computing applications.

Analysts have turned bearish on the semiconductor industry due to demand risks in the sector. Regardless, the stock has a consensus Buy rating and has received 19 Buy, 4 Hold, and 2 Sell ratings from 25 Wall Street analysts over the past 3 months. On July 22, Morgan Stanley analyst Joseph Moore downgraded Micron Technology, Inc. (NASDAQ:MU) to Underweight from Equal Weight and reiterated his price target of $56. Moore noted that Micron Technology, Inc. (NASDAQ:MU) has rallied even in tough market conditions.

As of March 31, Matrix Capital Management owns 4 million shares of Micron Technology, Inc. (NASDAQ:MU) and is the largest shareholder in the company. The fund’s stakes were valued at $311.56 million, which covers 3.73% of its investment portfolio.

At the close of Q1 2022, 78 hedge funds were long Micron Technology, Inc. (NASDAQ:MU) and held stakes worth $3.42 billion in the company. This is compared to 83 positions in the previous quarter with stakes worth $5.51 billion.