We recently released a compilation of
10 Inexpensive Semiconductor Stocks to Purchase Today
In this piece, we will examine how Micron Technology, Inc. (NASDAQ:MU) measures up against other affordable options among semiconductor stocks currently worth purchasing.
The semiconductor sector has recently faced increasing demand, groundbreaking technology advancements, and evolving economic conditions. As reported by Deloitte, following strong growth in 2024, the worldwide semiconductor market is anticipated to expand further in 2025, projecting total revenues to hit a record peak of $697 billion.
This path puts the industry squarely on course to achieve a remarkable $1 trillion in yearly revenues by 2030, necessitating an average compounded annual growth rate of 7.5% starting from 2025. By 2040, this number might even double once more, highlighting the enduring attractiveness for investors in the semiconductor supply chain.
The exceptional demand for generative artificial intelligence (Gen AI) processors is a key driver behind this surge. Initially forecasted to hit $50 billion by Deloitte’s 2024 Technology, Media, and Telecommunications Predictions, the Gen AI chip sector far surpassed these estimates, reaching over $125 billion in 2024 and accounting for more than 20% of global chip sales. This explosive growth is fueled by an amalgamation of CPUs, GPUs, memory systems, and data center components, propelling the swift development of AI infrastructure. This trend is anticipated not only to invigorate the semiconductor industry but also to yield substantial gains for leading companies within the market, all while reshaping strategies related to financial resource distribution.
Nevertheless, every part of the semiconductor industry hasn’t experienced growth at the level seen with artificial intelligence technologies. In particular, sectors such as automotive, analog, and smartphones faced challenges in 2024 due to excess inventory and weak consumer demand across various markets. However, moving into 2025, these areas show indications of improvement. The market for automotive chips may see gains because of increasing electric vehicle production and broader use of advanced driving assistance systems (ADAS). Similarly, investors are once again becoming interested in analog and Internet-of-Things-related chipmakers as their core markets become more stable. Although the smartphone sector might recover more slowly, it still holds potential for some positive developments thanks to upcoming high-tech devices and improved efficiency measures.
The present market conditions introduce an exceptional mix of challenges and possibilities. After a sell-off shook tech stocks earlier in 2025, overall valuations have decreased, notably within AI and high-growth sectors. Although these prices haven’t reached the deeply discounted levels from the 2022 slump, the recent adjustment has rendered numerous solid investments much more appealing. As reported by Morningstar, this situation offers investors an opening to either return to or boost their stake in the industry with better pricing, as worries about inflated values shift towards careful reassessment.
As this landscape evolves, less prominent and underappreciated companies within the memory and semiconductor equipment sectors are starting to garner interest. Stable demand, better client relationships, and growing importance in the AI hardware sector lay the foundation for possible reassessment. Concurrently, investments in automation and IoT technology continue to rise, underscoring a wider shift in the market toward resilience and flexibility.
In this article, we identify 10 cheap semiconductor stocks that offer compelling value in today’s shifting landscape. But before diving into the list, we outline the methodology used to filter and evaluate these opportunities.
Our Methodology
For this article, we have screened the most active current semiconductor stocks with a low P/E to arrive at our list of cheap semiconductor stocks to buy now. From there, we picked companies with the highest number of hedge fund investors, as per Insider Monkey’s database of Q4 2024. The stocks are ranked in ascending order of their hedge fund investors.
Why do we focus on the stocks that hedge funds accumulate? It’s straightforward: our analysis indicates that replicating the top stock choices from leading hedge funds allows us to exceed market performance. Each quarter, our quarterly newsletter recommends 14 small-cap and large-cap stocks, achieving a return of 373.4% since May 2014, surpassing its benchmark by 218 percentage points.
see more details here
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A detailed look at a computer motherboard featuring embedded semiconductor chips.
Micron Technology, Inc. (NASDAQ:
MU
)
Number of Hedge Fund holders: 94
P/E: 13.16
Micron Technology, Inc. (NASDAQ:MU), a worldwide frontrunner in memory and storage solutions, powers the efficiency and capability of various technological platforms including data centers, mobile gadgets, integrated systems, and artificial intelligence infrastructures. Over many years, they have been at the forefront of advancements in DRAM, NAND technologies, along with new forms of memory. As such, Micron plays an essential role in today’s digital marketplace. This company stands out as one of the top choices for investors looking into affordable semiconductor stock options.
Shares of Micron Technology, Inc. (NASDAQ:MU) have surged by 19.54% over the past week, fueled by favorable analyst assessments and strategic corporate reshaping. Both Wells Fargo and Citigroup analysts maintain “Buy” recommendations for the company, setting an average price target of $130 per share. This suggests approximately 63% room for further appreciation from current levels. Furthermore, institutional investors hold more than 83% of outstanding shares, reflecting strong faith in Micron’s prospects for sustained future expansion.
On April 17th, Micron Technology, Inc. (NASDAQ:MU) announced an extensive overhaul of their business units aimed at capitalizing comprehensively on the surge driven by the artificial intelligence revolution—from massive data centers to peripheral gadgets. This reshuffle seeks to simplify processes and accelerate advancements within crucial market segments.
Micron Technology, Inc. (NASDAQ:MU) has solidified its position as a technology leader and became the world’s premier supplier of HBM3E and SOCAMM memory solutions designed specifically for AI servers, working alongside NVIDIA. This achievement positions these innovations within upcoming generations of artificial intelligence systems such as those based on NVIDIA’s Hopper and Blackwell architectures.
In terms of finance, Micron Technology, Inc. (NASDAQ:MU) disclosed an annual revenue of $25.11 billion (a 61.6% rise compared to last year) along with a net income of $778 million (an increase of 113.3%). Despite experiencing a minor drop from the previous quarter, the overall trajectory remains decidedly upward. Thanks to cutting-edge offerings, favorable conditions driven by artificial intelligence advancements, and robust performance, Micron is well-poised for sustained expansion during this fresh technological era.
Overall, MU
ranks 1st
On our radar are some budget-friendly semiconductor stocks worth considering right now. Although we see merit in these semiconductor options, we’re inclined toward believing that AI stocks have stronger potential for generating significant profits over a shorter period. An example of such an AI stock has seen gains year-to-date, whereas many well-known AI stocks dropped approximately 25%. Should you be interested in exploring an AI equity with better prospects compared to MU yet available below five times its earnings, consider reviewing our detailed analysis on this topic.
cheapest AI stock
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Disclosure: There are no conflicts of interest. This article was initially published here.
Insider Monkey
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