We recently published a list of 10 Cheap Semiconductor Stocks to Buy Now . In this article, we are going to take a look at where Micron Technology, Inc. (NASDAQ:MU) stands against other cheap semiconductor stocks to buy now.
The semiconductor industry has been experiencing a recent wave of surging demand, technological innovation, and shifting macroeconomic dynamics. According to Deloitte, after a robust performance in 2024, the global semiconductor market is forecasted to grow even further in 2025, with total sales expected to reach an all-time high of $697 billion.
This trajectory places the sector firmly on track to meet a great milestone of $1 trillion in annual sales by 2030, for which the sector will require a compound annual growth rate of 7.5% from 2025 onward. By 2040, that figure could potentially double again, underscoring the long-term investment appeal of the semiconductor value chain.
The extraordinary demand for generative artificial intelligence (gen AI) processors is a major factor in this growth. The gen AI chip market was initially expected to reach $50 billion, according to Deloitte’s 2024 Technology, Media, and Telecommunications Predictions. It greatly exceeded those projections, surpassing $125 billion in 2024 and contributing to more than 20% of worldwide chip sales. A combination of CPUs, GPUs, memory, and data center components is driving the rapid expansion of AI infrastructure, which is expected to drive the semiconductor industry and generate disproportionate profits for market leaders while also changing capital allocation tactics.
However, not all corners of the semiconductor landscape have enjoyed AI-level tailwinds. Segments like automotive, analog, and smartphone chips struggled in 2024, hampered by oversupply and subdued end-market demand. Yet, as 2025 unfolds, these verticals are showing signs of recovery. Automotive chips stand to benefit from the ongoing electrification of transport and adoption of advanced driver-assistance systems (ADAS). Analog and IoT-focused semiconductors are gaining renewed investor interest as key markets stabilize. Even the smartphone segment, though slower to rebound, could offer selective upside driven by next-gen device rollouts and operational efficiencies.
The current market environment adds a unique layer of complexity—and opportunity. Following a selloff that has rattled tech stocks in early 2025, valuations across the board have compressed, particularly in the AI and high-growth segments. While not yet at the deep-discount levels seen during the 2022 downturn, the recent correction has made many quality names appear far more attractively priced. According to Morningstar, this has opened a window for investors to re-enter or increase exposure to the sector at more reasonable valuations, especially as overvalued concerns give way to strategic re-evaluation.
Amid this evolving backdrop, lesser-known and undervalued players in the memory and semiconductor equipment spaces are also beginning to draw attention. Stabilizing demand, improved customer alignment, and increasing relevance in the AI hardware ecosystem are providing the groundwork for a potential re-rating. Meanwhile, investment in automation and IoT technologies continues to climb, highlighting a broader market transition that favors resilience and adaptability.
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 are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating 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 )
Number of Hedge Fund holders: 94
P/E: 13.16
Micron Technology, Inc. (NASDAQ:MU), a key player in memory and storage solutions globally, powers the efficiency and capability of data centers as well as mobile gadgets, all the way down to embedded systems and artificial intelligence infrastructures. Boasting years of advancements in DRAM, NAND technologies, along with new forms of memory, Micron propels the modern digital economy forward. This makes it one of the top choices for budget-conscious investors looking at semiconductors.
Shares of Micron Technology, Inc. (NASDAQ:MU) have surged by 19.54% over the past week due to favorable analyst assessments and strategic company reshaping. Analysts at Wells Fargo and Citigroup maintain "Buy" recommendations for the stock, projecting an average target price of $130 per share, which suggests approximately 63% further upward movement potential. Over 83% of the company’s equity is held by institutional investors, reflecting strong belief in Micron’s prospects for sustained future expansion.
On April 17th, Micron Technology, Inc. (NASDAQ:MU) announced an extensive overhaul of their business units designed to capitalize on the surge driven by the artificial intelligence revolution—from massive cloud data centers right down to peripheral gadgets. This reshuffle aims to simplify processes and accelerate development within critical market sectors.
Micron Technology, Inc. (NASDAQ:MU) has established itself as a leader in technology and became the world's first company to deliver HBM3E and SOCAMM memory solutions for AI servers alongside NVIDIA. These products will feature prominently in upcoming AI systems such as NVIDIA’s Hopper and Blackwell platforms.
In terms of finance, Micron Technology, Inc. (NASDAQ:MU) posted an annual revenue of $25.11 billion (a 61.6% rise compared to last year) along with a net income of $778 million (which marks a 113.3% jump). Despite experiencing a minor dip from one quarter to the next, overall trends remain decidedly optimistic. Thanks to cutting-edge product development, favorable conditions driven by artificial intelligence advancements, and robust operational performance, Micron looks well-poised for sustained expansion during this emerging technology phase.
Overall, MU ranks 1st On our radar are some inexpensive semiconductor stocks worth considering right now. Although we recognize their potential, we feel strongly that AI stocks have even stronger prospects for generating substantial gains and achieving them sooner. One particular AI stock has surged since early 2025, contrasting with widely followed AI equities which dropped roughly 25% during the same period. For those interested in exploring an AI play potentially more lucrative than MU yet trading below five times its earnings, review our detailed analysis available in our latest report. cheapest AI stock .
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires .
Disclosure: None. This article is originally published at Insider Monkey .
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