We recently released an article entitled
Multimillionaire Paul Tudor Jones’ 10 Stock Choices Offering Substantial Gains
In this piece, we will examine how Micron Technology, Inc. (NASDAQ:MU) measures up against the other stock selections made by Paul Tudor Jones, which have significant room for growth.
It’s all gloomy regardless of what US President Donald Trump does. That’s the sentiment echoed by billionaire investor Paul Tudor Jones, who is taking issue with the aggressive tariffs aimed at settling the trade deficit between the US and its trading partners. While the US markets have pulled back by up to 8% in response to the tariff war woes, Jones believes the dust is unlikely to settle anytime soon.
The hedge fund manager believes that stocks will still reach new low levels despite Trump easing his aggressive tariff stance towards China. This prediction stems from ongoing negative shifts in broader economic circumstances.
For me, it’s quite straightforward,” Jones stated on CNBC’s “Squawk Box.” “Trump is focused on tariffs, while the Federal Reserve remains resistant to lowering interest rates. This isn’t beneficial for stocks. We might see further declines, even as Trump reduces tensions with China to 50%.
These comments arise following Trump imposing 145% tariffs on imported Chinese products as part of an effort to bring China to the negotiating table. Although the administration has suggested potentially reducing this rate to around 50% or even 40%, Jones believes that such measures would not suffice and may come too late.
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“He’ll dial it back to 50% or 40%, whatever. Even when he does that … it’d be the largest tax increases since the ’60s,” Jones said. “So you can kind of take 2%, 3% off growth.”
The tariff conflict has placed the U.S. central bank in a difficult position as it attempts to adjust interest rates during an economic tussle expected to ignite inflation. Since December, the U.S. Federal Reserve has maintained its primary overnight borrowing rate due to increasing worries that the trade battle could cause a substantial rise in prices. Chairman Jerome Powell, who advocates for more transparency before making decisions, has unsettled financial markets and faced criticism from the President of the United States.
Despite facing challenges and ambiguities, Jones has structured his investment strategy so as to profit when the current sell-off stabilizes. Known for gaining recognition through successful trades during the 1987 stock market collapse, he has become a notable figure on Wall Street due to his exceptional skill at predicting changes in the financial markets and attempting to leverage these opportunities.
Jones has constantly reiterated the need to concentrate on risk management and protecting current investments during heightened market volatility. Instead of daydreaming about possible gains, he advises investors to spend 90% of their time considering the cash at risk in their investments.
“People need to focus on the money that they have at risk and how much capital is at risk in any single investment they have. If everyone spent 90% of their time on that, not 90% of the time on pie-in-the-sky ideas of how much money they’re going to make, then they would be incredibly successful investors,” Jones said.
Tudor Investment Corporation
, founded in 1980, is the investment firm that the hedge fund manager uses to pursue opportunities in the equity markets while leveraging solid risk management strategies. The firm has generated an average return of 19% over the years, affirming a solid stock-picking strategy. With that, let’s take a look at the firm’s top stock picks with huge upside potential.
Our Methodology
We examined Tudor Investment Corporation’s Q4 2024 Form 13F documents to pinpoint billionaire investor Paul Tudor Jones’ top ten stock picks offering substantial growth prospects. From this list, we selected those equities expected to rise over 30%, according to analyst assessments, and scrutinized what makes them compelling buys—solid opportunities likely to deliver considerable long-term returns. These selections were arranged from lowest to highest anticipated gains by early May. Additionally, we included insights into how major hedge funds viewed each of these securities during the fourth quarter of 2024.
Why do we focus on the stocks that hedge funds amass? It’s straightforward: our analysis indicates that mimicking the top choices from leading hedge funds allows us to exceed market performance. Each quarter, our monthly publication recommends 14 small-cap and large-cap equities, achieving returns of 373.4% since May 2014, surpassing its benchmark by 218 percentage points.
see more details here
).
A detailed look at a computer motherboard featuring embedded semiconductor chips.
Micron Technology, Inc. (NASDAQ:
MU
)
Tudor Investment Corporation’s Equity Position: $25.03 Million
Upside Potential for Stock as of May 7: 55.97%
Number of Hedge Fund holders: 94
Micron Technology, Inc. (NASDAQ:MU), a corporation focused on the creation of memory and storage solutions, serves multiple sectors such as data centers, personal computers, smartphones, and automobiles. Despite experiencing an 8 percent decline this year, JPMorgan’s analysts continue to express confidence in Micron’s future potential due to limited impact from SKUs subject to Chinese regulatory measures.
Despite having minimal involvement with the H20 and H20e product lines, the firm remains more successful than the broader industry. This success is partly attributed to Micron Technology, Inc. (NASDAQ:MU), which has faced challenges shipping advanced memory products in China because of regulations imposed by the Cyberspace Administration of China (CAC). Nonetheless, JPMorgan believes significant potential exists for advancements in artificial intelligence within China’s market. Consequently, Micron Technology anticipates experiencing an increase in revenues potentially reaching as much as 41% during fiscal year 2025.
Micron Technology, Inc. (NASDAQ:MU) has reported robust financials for the second quarter of fiscal 2025. The earnings statement shows revenues reaching $8.05 billion compared with $5.82 billion during the corresponding period the previous year. Net income stood at $1.78 billion, equivalent to $1.56 per share. These figures exceeded expectations largely due to tripling of data center revenue, which capitalized on the surge driven by artificial intelligence advancements. Looking ahead, Micron anticipates setting new records for quarterly revenue in fiscal third quarter of 2025, fueled by substantial demand for both DRAM and NAND products within data centers and consumer-focused sectors.
Overall MU
ranks 3rd
on our list of Paul Tudor Jones’ stock picks with huge upside potential. While we acknowledge the potential of 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 time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this
cheapest AI stock.
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Disclosure: There are none. This article was initially published here.
Insider Monkey
.
