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Invesco Distributors, Inc., an investment management firm, released its “Invesco Growth and Income Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. US stocks experienced increases in the third quarter despite a drop in early August as inflation subsided and the Federal Reserve (Fed) initiated its much-anticipated monetary easing cycle. As interest rates became more predictable, investors shifted their focus from technology and artificial intelligence (AI) equities, which had dominated much of 2024, to small-cap and value stocks that may profit from lower rates. Against this benchmark, the fund underperformed the benchmark. The fund's under performance was driven by the stock selection in the financial, consumer discretionary, information technology (IT), and communication services industries. Relative performance was enhanced by the choice of stocks in consumer staples, industrials, and real estate. In addition, check the fund’s top five holdings to know its best picks in 2024.
Invesco Growth and Income Fund highlighted stocks like Micron Technology, Inc. (NASDAQ:MU), in the third quarter 2024 investor letter. Micron Technology, Inc. (NASDAQ:MU) designs, develops, manufactures, and distributes memory and storage products globally. The one-month return of Micron Technology, Inc. (NASDAQ:MU) was 15.15%, and its shares gained 0.69% of their value over the last 52 weeks. On December 19, 2024, Micron Technology, Inc. (NASDAQ:MU) stock closed at $87.09 per share with a market capitalization of $97.033 billion.
Invesco Growth and Income Fund stated the following regarding Micron Technology, Inc. (NASDAQ:MU) in its Q3 2024 investor letter:
"Micron Technology, Inc. (NASDAQ:MU): In late June, Micron reported earnings that were generally in line with expectations. However, management provided weaker guidance going forward. The stock immediately began to sell off, which continued through the third quarter as investors appeared to question the company’s long-term growth outlook. Rotation out of AI-related stocks also appeared to weigh on Micron Technology."
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Micron Technology, Inc. (NASDAQ:MU) is in 16th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 107 hedge fund portfolios held Micron Technology, Inc. (NASDAQ:MU) at the end of the third quarter which was 120 in the previous quarter. While we acknowledge the potential of Micron Technology, Inc. (NASDAQ:MU) as an investment, our conviction lies in the belief that 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 as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.