We recently Jim Cramer’s 10 stocks to buy and sell through Q3 2024. Micron Technology Inc (NASDAQ:MU) ranks first on the list, so it’s worth taking a closer look.
During a recent show, Jim Cramer discussed the changing consumer behavior in the United States and wondered if consumers are simply “tired” of paying higher prices and becoming “thrifty.” Cramer said that this “thrift argument” is not “obvious,” but he recognizes this latest trend based on several new developments. Cramer listed several consumer-related companies that are benefiting from the change in consumer behavior by offering discount prices. Cramer rejected the idea that dollar stores are cheap. He said that these stores are “aggressively” raising prices, making it a “misnomer” to call them dollar stores. The CNBC host said dollar store companies are getting beaten down in the new environment because consumers “want prices to go down.”
Jim Cramer also said that the “rental society” is winning out over the “ownership society,” pointing to an emerging trend of consumers renting boats rather than buying them, enjoying the experience without spending a fortune.
For this article, we watched some of Jim Cramer’s latest shows on CNBC and picked some stocks that he recommended investors buy or sell. For each stock, we mentioned the number of hedge fund investors. Why are we interested in stocks that hedge funds are flocking to? The reason is simple: our research shows that you can beat the market by mimicking the top picks of the best hedge funds. Our quarterly newsletter strategy selects 14 small and large stocks every quarter and has returned 275% since May 2014, beating the benchmark by 150 percentage points. (Click here for details).
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Micron Technology, Inc. (NASDAQ:MU)
Number of hedge fund investors: 115
Jim Cramer said on his latest show that Micron is a “quiet pioneer” in the “non-AI” and “part-AI” semiconductor industry because the company’s “strength” is in high-bandwidth memory, which is used throughout the “semiconductor food chain.” Cramer said Micron’s stock price has doubled since October and “is not going to stop going up.”
Wall Street is keeping a close eye on Micron Technology Inc. (NASDAQ:MU)’s rise in the AI industry dominance hierarchy. Bank of America believes Micron Technology Inc. (NASDAQ:MU) will be one of the Big 10 AI stocks in 2024 after a massive rally of about 62% so far this year.
UBS recently maintained a buy rating on Micron Technology Inc. (NASDAQ:MU) and raised its price target on the company from $125 to $155, citing its industry research suggesting rising prices in the DRAM and NAND memory industry. UBS said Micron Technology Inc. (NASDA:MU)’s valuation could become attractive once gross margins peak in the fourth quarter of 2025. UBS expects Micron Technology Inc. (NASDA:MU) to earn EPS of around $17.50 in 2025.
In its fourth-quarter 2023 investor letter, Sequoia Fund said the following about Micron Technology Inc. (NASDAQ:MU):
“Last year’s divestments included Netflix, Bank of America and Micron Technology Inc. (NASDAQ:MU). As we discussed in our second quarter shareholder letter, we divested from Micron because rising geopolitical tensions have undermined our rationale for the investment. These tensions have increased investment risks in the high-performance semiconductor industry. While these risks are tolerable, we believed it was prudent to reduce our portfolio exposure. We believe Bank of America and Micron were purchased conservatively given the facts at hand, but the facts have changed and we have moved on.”
Overall, Micron Technology, Inc. (NASDAQ:MU) is ranked #1 on Insider Monkey’s list. Jim Cramer’s 10 stocks to buy and sell through Q3 2024While we acknowledge the potential of Micron Technology Inc. (NASDAQ:MU), we are more confident that AI stocks can deliver higher returns in a shorter time frame. If you are looking for AI stocks that are more promising than Micron Technology Inc. (NASDAQ:MU) but are still trading at less than five times earnings, check out our report. Cheapest AI Stocks.
Read next: Analyst sees $25 billion in new ‘opportunity’ for NVIDIA and Jim Cramer’s recommended stocks.
Disclosures: None. This article was originally published on Insider Monkey.
