In this article, we will list the Top 5 Undervalued Blue Chip Stocks Analysts Recommend for Smart Investing. Please visit Top 10 Undervalued Blue Chip Stocks Analysts Recommend for Smart Investing if you would like to see the extended list and the methodology behind it.
5. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 98
Merck & Co., Inc. (NYSE:MRK) is one of the top 10 undervalued blue chip stocks analysts recommend for smart investing. Merck & Co., Inc. (NYSE:MRK) announced on May 29 that calderasib (MK-1084), in combination with KEYTRUDA®, which is the company’s anti-PD-1 therapy, has been granted Breakthrough Therapy designation by the U.S. Food and Drug Administration (FDA) for the first-line treatment of patients with advanced or metastatic non-small cell lung cancer with KRAS G12C-mutation and expressing PD-L1. Calderasib is an investigational oral specific KRAS G12C inhibitor, and this marks the first Breakthrough Therapy designation for calderasib, supported by positive data from the Phase 1 KANDLELIT-001 trial.
Dr. Shweta Jain, vice president, global clinical development, Merck Research Laboratories, stated that the Breakthrough Therapy designation for calderasib highlights the “promising potential of this medicine and unmet need for certain patients with KRAS G12C-mutated NSCLC.” Merck & Co., Inc. (NYSE:MRK) clarified that the FDA’s Breakthrough Therapy designation is granted to accelerate the development and review of medicines intended for the treatment of serious or life-threatening conditions.
Merck & Co., Inc. (NYSE:MRK) is a biopharmaceutical company that delivers health solutions to advance the treatment and prevention of diseases in animals and people. Its Pharmaceutical segment offers vaccines and human health pharmaceutical products, typically therapeutic and preventive agents. Its Animal Health segment develops, discovers, manufactures, and markets a range of vaccines and veterinary pharmaceutical products. The company’s medicine KEYTRUDA may treat certain cancers by working with the immune system.
4. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 101
Salesforce, Inc. (NYSE:CRM) is one of the top 10 undervalued blue chip stocks analysts recommend for smart investing. DA Davidson cut the price target on Salesforce, Inc. (NYSE:CRM) to $175 from $200 on May 28, maintaining a Neutral rating on the shares. The firm told investors in a research note that the company’s fiscal Q1 earnings represent a strong start to the year. However, it added that despite low investor expectations heading into the quarter, the results and the updated guide did not manage to provide the ammunition for bulls to get more constructive on the name and endorse the top-line acceleration story for the second half of FY27.
Salesforce, Inc. (NYSE:CRM) also received a rating update from BMO Capital the same day, with the firm cutting the price target on the stock to $215 from $225 while maintaining an Outperform rating on the shares following the company’s fiscal Q1 results. The firm told investors in a research note that the results and guidance are not likely to be sufficient to convince either bears or bulls to switch sides, and that offer limited changes to FY27 top-line growth expectations.
Salesforce, Inc. (NYSE:CRM) designs and develops cloud-based enterprise software for customer relationship management. Its solutions encompass customer service and support, sales force automation, digital commerce, marketing automation, collaboration, community management, industry-specific solutions, and Salesforce platforms. It also offers training, guidance, support, and advisory services.
3. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 103
Chevron Corporation (NYSE:CVX) is one of the top 10 undervalued blue chip stocks analysts recommend for smart investing. On May 26, Barclays lifted the price target on Chevron Corporation (NYSE:CVX) to $213 from $192 and maintained an Equal Weight rating on the shares. It told investors in a research note that factors such as depleting inventories, a “muted” U.S. production response to the Middle East war, and a shrinking OPEC spare capacity are reinforcing a tighter oil macro backdrop that is not fully reflected in equities. These circumstances set up the “oily” exploration and production companies for a share re-rating post the conflict, according to Barclays. The firm also cut its gas price outlook on near-term oversupply while adjusting ratings and price targets in the integrated oil and exploration and production group.
Chevron Corporation (NYSE:CVX) also received a rating update from Mizuho on May 27. The firm lifted the price target on the stock to $230 from $225 and reiterated an Outperform rating on the shares, stating that it anticipates prolonged effects of the Iran crisis on global oil prices and refining cracks.
Chevron Corporation (NYSE:CVX) provides oil and gas energy solutions, including crude oil and natural gas, the manufacture of transportation fuels, petrochemicals, lubricants, and additives, and the development of technologies that boost business and the industry. Its operations are divided into the Upstream and Downstream segments.
2. Sandisk Corporation (NASDAQ:SNDK)
Number of Hedge Fund Holders: 114
Sandisk Corporation (NASDAQ:SNDK) is one of the top 10 undervalued blue chip stocks analysts recommend for smart investing. Susquehanna lifted the price target on Sandisk Corporation (NASDAQ:SNDK) to $3,250 from $2,000 on May 29, maintaining a Positive rating on the shares. The firm stated that its checks suggest Q2 DRAM average selling prices are trending to be up 50%-60% quarter-over-quarter, ahead of expectations of up 50%. Meanwhile, NAND ASPs are trending unchanged at up 75-100% quarter-over-quarter. Susquehanna lifted estimates for memory manufacturers under its coverage, driven by growing confidence in the sustainability of the margin profile and the continued strength in blended ASPs.
Sandisk Corporation (NASDAQ:SNDK) also received a rating update from Mizuho on May 28, with the firm lifting the price target on the stock to $1,825 from $1,625 while maintaining an Outperform rating on the shares. The firm stated that it increased targets in the semiconductor space after analyzing the memory market and the impact of agentic AI. It further told investors in a research note that it believes DRAM demand will be strong into 2027, as NAND demand is not slowing down, and high bandwidth memory’s total addressable market is growing.
Sandisk Corporation (NASDAQ:SNDK) is involved in the development, manufacture, and provision of storage devices and solutions based on NAND flash technology. The company’s products include solid-state drives, memory cards, and USB flash drives.
1. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 154
Micron Technology, Inc. (NASDAQ:MU) is one of the top 10 undervalued blue chip stocks analysts recommend for smart investing. Susquehanna lifted the price target on Micron Technology, Inc. (NASDAQ:MU) to $1,750 from $600 on May 29 and maintained a Positive rating on the shares. The firm stated that its checks suggest Q2 DRAM average selling prices are trending to be up 50%-60% quarter-over-quarter, ahead of expectations of up 50%. Meanwhile, NAND ASPs are trending unchanged at up 75-100% quarter-over-quarter. Susquehanna lifted estimates for memory manufacturers under its coverage, driven by growing confidence in the sustainability of the margin profile and the continued strength in blended ASPs.
In a separate development, Micron Technology, Inc. (NASDAQ:MU) announced on May 5 that it is now shipping the 245TB capacity Micron® 6600 ION SSD, which marks the highest capacity commercially available SSD in the world. The company stated that the drive is a notable step forward in rack-scale storage density for data centers, specifically designed to support AI, enterprise, cloud, and hyperscale workloads. These include next-generation AI data lakes and cloud-scale file and object storage.
Micron Technology, Inc. (NASDAQ:MU) provides innovative memory and storage solutions. Its operations are divided into the following segments: Compute and Networking Business Unit (CNBU), Mobile Business Unit (MBU), Embedded Business Unit (EBU), and Storage Business Unit (SBU).
While we acknowledge the potential of MU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MU and that has 100x upside potential, check out our report about the cheapest AI stock.
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