Is Micron Know-how, Inc. (MU) the Low-cost Semiconductor Inventory to Purchase Now?

We lately revealed a listing of 10 Low-cost Semiconductor Shares to Purchase Now. On this article, we’re going to try the place Micron Know-how, Inc. (NASDAQ:MU) stands towards different low-cost semiconductor shares to purchase now.

The semiconductor trade has been experiencing a current wave of surging demand, technological innovation, and shifting macroeconomic dynamics. In keeping with Deloitte, after a sturdy efficiency in 2024, the worldwide semiconductor market is forecasted to develop even additional in 2025, with complete gross sales anticipated to succeed in an all-time excessive of $697 billion.

This trajectory locations the sector firmly on observe to satisfy a terrific milestone of $1 trillion in annual gross sales by 2030, for which the sector would require a compound annual development price of seven.5% from 2025 onward. By 2040, that determine might probably double once more, underscoring the long-term funding enchantment of the semiconductor worth chain.

The extraordinary demand for generative synthetic intelligence (gen AI) processors is a significant component on this development. The gen AI chip market was initially anticipated to succeed in $50 billion, in keeping with Deloitte’s 2024 Know-how, Media, and Telecommunications Predictions. It vastly exceeded these projections, surpassing $125 billion in 2024 and contributing to greater than 20% of worldwide chip gross sales. A mix of CPUs, GPUs, reminiscence, and knowledge heart parts is driving the speedy enlargement of AI infrastructure, which is predicted to drive the semiconductor trade and generate disproportionate income for market leaders whereas additionally altering capital allocation ways.

Nonetheless, not all corners of the semiconductor panorama have loved AI-level tailwinds. Segments like automotive, analog, and smartphone chips struggled in 2024, hampered by oversupply and subdued end-market demand. But, as 2025 unfolds, these verticals are displaying indicators of restoration. Automotive chips stand to learn from the continued electrification of transport and adoption of superior driver-assistance methods (ADAS). Analog and IoT-focused semiconductors are gaining renewed investor curiosity as key markets stabilize. Even the smartphone section, although slower to rebound, might provide selective upside pushed by next-gen machine rollouts and operational efficiencies.

The present market atmosphere provides a novel layer of complexity—and alternative. Following a selloff that has rattled tech shares in early 2025, valuations throughout the board have compressed, significantly within the AI and high-growth segments. Whereas not but on the deep-discount ranges seen throughout the 2022 downturn, the current correction has made many high quality names seem much more attractively priced. In keeping with Morningstar, this has opened a window for buyers to re-enter or improve publicity to the sector at extra affordable valuations, particularly as overvalued issues give option to strategic re-evaluation.

Amid this evolving backdrop, lesser-known and undervalued gamers within the reminiscence and semiconductor tools areas are additionally starting to attract consideration. Stabilizing demand, improved buyer alignment, and growing relevance within the AI {hardware} ecosystem are offering the groundwork for a possible re-rating. In the meantime, funding in automation and IoT applied sciences continues to climb, highlighting a broader market transition that favors resilience and adaptableness.

On this article, we determine 10 low-cost semiconductor shares that supply compelling worth in right now’s shifting panorama. However earlier than diving into the listing, we define the methodology used to filter and consider these alternatives.

For this text, we’ve got screened essentially the most energetic present semiconductor shares with a low P/E to reach at our listing of low-cost semiconductor shares to purchase now. From there, we picked firms with the best variety of hedge fund buyers, as per Insider Monkey’s database of This autumn 2024. The shares are ranked in ascending order of their hedge fund buyers.

Why are we within the shares that hedge funds pile into? The reason being easy: our analysis has proven that we are able to outperform the market by imitating the highest inventory picks of one of the best hedge funds. Our quarterly publication’s technique selects 14 small-cap and large-cap shares each quarter and has returned 373.4% since Could 2014, beating its benchmark by 218 proportion factors. (see extra particulars right here).

Is Micron Technology, Inc. (MU) the Cheap Semiconductor Stock to Buy Now? — Is Micron Know-how, Inc. (MU) the Low-cost Semiconductor Inventory to Purchase Now?

An in depth-up view of a pc motherboard with built-in semiconductor chips.

Variety of Hedge Fund Holders: 94

P/E: 13.16

Micron Know-how, Inc. (NASDAQ:MU) is a worldwide chief in reminiscence and storage know-how, fueling the efficiency and capability of knowledge facilities and cellular units to embedded methods and AI infrastructure. With many years of DRAM, NAND, and rising reminiscence innovation, Micron is a driving drive on the earth’s digital economic system. It’s among the many greatest low-cost semiconductor shares to put money into.

Micron Know-how, Inc. (NASDAQ:MU) has rallied 19.54% within the final week, pushed by constructive analyst opinion and tactical enterprise restructuring. Wells Fargo and Citi analysts each have “Purchase” scores on the inventory, with a median value goal of $130, implying virtually 63% potential upside. Institutional holders personal greater than 83% of shares, indicating strong confidence in Micron’s long-term development narrative.

On April seventeenth, Micron Know-how, Inc. (NASDAQ:MU) issued a far-reaching enterprise unit reorganization to extra absolutely seize alternatives fueled by the AI growth, from hyperscale knowledge facilities to edge units. The restructuring is meant to chop by complexity and hasten innovation in key finish markets.

Micron Know-how, Inc. (NASDAQ:MU) has additionally secured its technological management and is the primary firm globally to ship HBM3E and SOCAMM reminiscence options for AI servers in collaboration with NVIDIA. These choices shall be part of next-generation AI methods like NVIDIA’s Hopper and Blackwell platforms.

Financially, Micron Know-how, Inc. (NASDAQ:MU) reported $25.11 billion in annual income (61.6% year-over-year improve) and $778 million in web revenue (113.3% improve). Though there was a slight quarter-over-quarter decline, the pattern is firmly constructive. With modern merchandise, AI tailwinds, and robust execution, Micron is positioned for long-term development within the new tech cycle.

General, MU ranks 1st on our listing of low-cost semiconductor shares to purchase now. Whereas we acknowledge the potential of semiconductor shares, our conviction lies within the perception that AI shares maintain better promise for delivering greater returns, and doing so inside a shorter timeframe. There may be an AI inventory that went up because the starting of 2025, whereas widespread AI shares misplaced round 25%. If you’re searching for an AI inventory that’s extra promising than MU however that trades at lower than 5 instances its earnings, try our report about this least expensive AI inventory.

Disclosure: None. This text is initially revealed at Insider Monkey.