In this article, we analyze whether Micron Technology, Inc. (NASDAQ:MU) is the hottest large AI stock to buy right now. We also take a closer look at the progress of the AI industry. To see more AI stocks with momentum, check out our free report. 7 Unstoppable Artificial Intelligence (AI) Stocks to Buy Now.
AI Bullish View
On April 20th, Matt Bryson, an enterprise hardware analyst at Wedbush, appeared in an interview. Yahoo Finance There, he discussed the key players in the AI industry and why interest rate cuts may have little impact on the tech wave. Tech stocks such as Advanced Micro Devices, Inc. (NASDAQ: AMD) and Intel Corporation (NASDAQ: INTC) have fallen 15% in the past 30 days, and the Philadelphia Semiconductor Index has fallen 10% despite previous highs. Despite the pullback in industry activity, Bryson remains bullish on artificial intelligence. Bryson highlights that the AI engine is fueled by chip stocks and cloud service providers, boosting NVIDIA Corporation (NASDAQ: NVDA), Advanced Micro Devices, Inc. (NASDAQ: AMD), and Amazon.com Inc (NASDAQ: AMZN). He added that despite the pullback, big tech stocks, especially chipmakers, will continue to invest in AI in 2025 and deliver strong growth results. Bryson suggests that high interest rates will certainly weigh on consumer spending in the long term, impacting high-multiple stocks such as the big chipmakers. He further noted that interest rates may have little or no impact on the fundamentals of technology and AI. Data center operators such as Microsoft Corp. (NASDAQ:MSFT) and Amazon.com Inc. (NASDAQ:AMZN) will continue to focus on developing AI applications, according to Bryson.
Bryson believes that NVIDIA Corporation's (NASDAQ:NVDA) Blackwell, a next-generation semiconductor product, will have a positive impact on the industry. He believes that AI hardware and software companies will undoubtedly define the industry's success criteria, but argues that predicting AI technology developments at this time is uncertain. Following NVIDIA Corporation (NASDAQ:NVDA), Bryson is also bullish on Taiwan Semiconductor Manufacturing Co., Ltd. (NYSE:TSM), and spoke of the possibility that companies such as Microsoft Corp. (NASDAQ:MSFT) and Amazon.com Inc. (NASDAQ:AMZN) will develop their own semiconductor products and change Taiwan Semiconductor Manufacturing Co., Ltd.'s (NYSE:TSM) market position. Bryson said that he expects the industry to grow, but that it is difficult to predict which fields AI will penetrate.
Some developments in the field of AI
In a groundbreaking update, OpenAI released GPT-4o on May 13, a platform that can process voice, vision, and text in real time. This new application takes human-computer interaction to the next level. The application can respond to voice input and provide output in 232 milliseconds, compared to an average of 320 milliseconds. Not only does this new product complement GPT-4 Turbo's performance on English text and code, it is 50% cheaper and much faster. The tool also makes it easier to understand visual and voice input.
On May 20, Microsoft (NASDAQ:MSFT) unveiled the CoPilot+ PC, designed for artificial intelligence. The new PC is one of the most intelligent and fastest PCs ever. The new silicon can perform more than 40 trillion operations per second, has long battery life and is built with advanced AI models. Individuals with the new device can use Cocreation to generate and adjust images in real time and use the Live Captions tool to work in more than 40 languages. The PC will be available starting June 18.
Wall Street is bullish on Microsoft Corp. (NASDAQ:MSFT). On May 22, analyst firm Wedbush reaffirmed its Outperform rating for Microsoft Corp. (NASDAQ:MSFT) and maintained its target price at $500. Based on analysts' forecasts over the past three months, 32 Wall Street analysts have maintained a Buy rating on the company's stock, with an average target price of $491.23 and a maximum expected price of $600. The company's average target price represents an 11.88% increase from the current stock price of $427.25.
Now that we've discussed the latest trends in the AI space, let's take a look at the 7 Artificial Intelligence (AI) stocks that are unstoppable. You can also read our articles on the best AI stocks according to billionaire Steve Cohen and the best AI stocks to buy now according to billionaire Stanley Druckenmiller.
A macro view of the company's 5G/4G chips and modules showcasing the company's cutting-edge technology.
Micron Technology, Inc. (NASDAQ:MU)
Year-to-date increase as of April 23: 47.97%
Number of hedge fund holders: 115
Micron Technology, Inc. (NASDAQ:MU) is a prominent artificial intelligence stock ranked 5th on our list. The company is home to intelligent infrastructure that enables the development of AI and generative AI applications. The company's leading AI memory cards include HBM3E, DDR5, and LPDDR. The company's AI storage SSDs include the 9,000, 7,000, and 6,000 series. On May 1, Micron Technology, Inc. (NASDAQ:MU) announced that it will offer 128 GB DDR5 32 GB memory to meet the capacity and speed demands of generative AI applications. These memory modules manage critical AI and machine learning (ML) applications in data centers, support high-performance computing, and feature in-memory databases.
Micron Technology Inc. (NASDAQ:MU) was listed in 115 investors' portfolios at the end of the first quarter of 2024. These funds had a combined total of $6.14 billion worth of shares open in the company. As of March 31, Citadel Investment Group was the company's largest shareholder, with a position worth $764.5 million open.
Wall Street is bullish on Micron Technology Inc. (NASDAQ:MU). On May 20, Morgan Stanley analyst Joseph Moore upgraded the stock from underweight to equal weight and raised his price target from $98 to $130. Over the past three months, 24 Wall Street analysts have maintained a buy rating on Micron Technology Inc. (NASDAQ:MU). As of May 20, the stock's average price target is $137.6, with a maximum expected price of $225.
To see 4 stocks that rank higher than Micron Technology Inc. (NASDAQ:MU), check out our free report. 7 Unstoppable Artificial Intelligence (AI) Stocks to Buy.
If you're looking for AI stocks that are as promising as Microsoft but trade at less than five times earnings, check out our report. Cheapest AI Stocks. Read next: Michael Burry sells these stocks and a new dawn dawns for US stocks.
Disclosures: None. This article was originally published on Insider Monkey.
