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Micron Technology (NASDAQ:MU)

Number of Hedge Fund Holders: 120 

Micron Technology (NASDAQ:MU) makes and sells memory and storage products. AI data center spending has created a large market for High Bandwidth Memory (HBM), one of the premier products of the firm. Micron has leapt ahead of competitors in this regard as the HBM3e chips it sells are 30% more efficient than others on the market. This number is important because AI data centers consume a lot of power and efficiency solutions are highly sought after in the industry. Micron, which launched these new chips earlier this year, has already sold production of these through 2025. This is driving investor interest in the company, pushing up prices as demand increases, and boosting margins for the chipmaker.

Micron Technology (NASDAQ:MU) has many famous customers, including AI leaders like Apple and NVIDIA. The latter uses the HBM3e chips in their H200 GPUs. These GPUs are likely to sell like hot cakes as production for Blackwell, the latest AI chips marketed by NVIDIA, is hit with delays. Demand for the DRAM, an AI data center essential and another Micron product, is also increasing. As firms like NVIDIA cross $3 trillion in valuation, with analysts forecasting it to cross the $10 trillion mark by 2030 keeping in mind the AI potential, smaller players like Micron have lots of room to grow in the coming years.

Overall MU ranks 11th on our list of the trending AI stocks on latest analyst ratings and news. While we acknowledge the potential of MU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Michael Burry Is Selling These Stocks and Jim Cramer is Recommending These Stocks.

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



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