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We recently compiled a list of the 10 Undervalued Chip Stocks Near 52-Week Lows. In this article, we are going to take a look at where Micron Technology, Inc. (NASDAQ:MU) stands against the other undervalued chip stocks.
Energy and EV stocks continue to be in focus as Donald Trump signs a bunch of executive orders that will have far-reaching impacts on many industries. He even revoked an executive order related to AI, though it addresses a matter that may not directly impact a company's sales in the near term. AI stocks are going under the radar for a few weeks but with earnings season about to get into full gear, we may not have the same opportunities in a couple of weeks that we have now.
Many of the chip stocks continue to stay undervalued. The main reason is the lack of demand in the niche industries that these companies serve. But this demand will eventually shift at some point in 2025, which is what makes them so attractive to consider at this point.
We came up with 10 stocks that we believe are undervalued, near their 52-week lows, and present good investment opportunities. To come up with the 10 undervalued chip stocks that are near 52-week lows, we only considered stocks with a market cap of between $10 billion and $200 billion that hit their 52-week lows recently.
Close-up of Silicon Die are being Extracted from Semiconductor Wafer and Attached to Substrate by Pick and Place Machine. Computer Chip Manufacturing at Fab. Semiconductor Packaging Process.
A close-up view of a computer motherboard with integrated semiconductor chips.
Micron Technology, Inc. (NASDAQ:MU)
Micron Technology sunk on its most recent earnings report after the company gave weak guidance for the ongoing fiscal first quarter (Dec-Feb). The reason cited by the management was the weakness in consumer-centric markets, something that could also negatively impact the second quarter. As a result, Micron stock plunged 13% in after-hours trading on the day of the announcement last month.
Micron Technology’s 52-week low is $79.15, a level hit in February last year. Since then, the stock has come very close to testing this level 3 times, bunding back strongly on all occasions. This would suggest there is some inherent value in the company’s stock at these levels. After the recent plunge in stock price, the stock is already back at almost the same levels as before the announcement.
This strong surge is what gives us the confidence that Micron’s troubles are short-term and investors are willing to ignore them. Anyone who listened to Sanjay Mehrotra on the earnings call would share this sentiment: