Tech stocks increased in 2024. The technical sector may have been given a break in recent weeks, but the Nasdaq Composite(Nasdaqindex: ^IXIC) Market index is still floating just under the record highs it achieved in December.
But the rising stock prices have not reached every corner of the technical market. A few legendary market leaders act with considerable discounts according to their peaks of 52 weeks. Read on to see why you should view a deeper look at semiconductor veterans Micron technology(Name: MU) And Intel(Nasdaq: Intc) now.
Micron benefits greatly from the tree of artificial intelligence (AI). In particular, systems used for training or operation of generative AI tools require a lot of memory.
This even applies to Deepseek, the large language model (LLM) known for its low hardware costs. The AI Accelerator cards with the newest Deepseek V3 version require more than 1.5 terabytes (TB) of high-speed video memory (VRAM). Lighter models can be managed from a meaty laptop, but even the depth -like deep Kalie Deepseek V2 236B must have more than half a tubcuses video memory. That is a bit difficult to fit in one system, especially a laptop. The largest laptop RAM modules that are for sale today are nowadays on 48 gigabytes (GB), while servers can get their digital cards of 256 GB.
And that is a generative AI system of sources-tripty. More ambitious models such as the Chatgpt from OpenAi use orders of size more processing power and memory. And these big-iron solutions do not go away. Remember that the lighter Deepseek system is only possible because it can use the work that is already being done through meatier solutions.
So Micron’s stock coincided with AI Accelerator Designer Nvidia(Nasdaq: NVDA) When Deepseek struck the world stage in January. The shares of Micron even took a deeper hairstyle than that of Nvidia. And the stock was demonstrably undervalued for The Deepseek discount.
Today, the share of Hand is changing only 9 times ahead of income estimates, according to Finviz. These estimates are approximately 50% more optimistic than the current Run-rate for income, against which micro deals with a 13x-meerdere. Since the management “a substantial income record” and much better profitability expected in the fiscal 2025 just started, that seems a reasonable assumption.
Turnover increased by 84% years after year in the last winning report, while the Bottom Line waved from a robust loss to a solid net profit. Micron is on schedule to deliver strong growth in 2025, and the stock price does not reflect this bullish reality yet.
Intel is a different story. The semiconductor -veteran is going through many changes and loses market share to old rivals Nvidia and Advanced micro devices(Nasdaq: AMD)And implementing an expensive strategy shift under an interim management team. It is a lot, even for an innovator of world class with deep pockets.
But the situation of Intel is less terrible than the stock graph suggests. Intel shares only trades a hair above book value, a rating that is usually reserved for companies with regard to bankruptcy. But Intel is nothing like that. It is still a leading maker of server and PC system processors, not to mention the respectable Gaudi line of AI accelerators. And within the next four to five years, the strategy shift should result in a chip-making-casting company of world class that mainly ordered itself on American soil.
That is a promising position. Taiwan Semiconductor Manufacturing(NYSE: TSM) Is the world leader in that industry today. The stock is valued at almost 8 times its enormous book value. I am not saying that Intel will match that valuation ratio in a few years, but it certainly deserves a higher figure than the bargain ratio it will get today.
Yes, many things will have to go well, because Intel is investigating a completely different strategy. Much of the future success of the company depends on finding the right CEO for the constant sharp strategic turn. That said, an industrial legend of Intel’s caliber should not have any problems finding top talent talent. Who would not like to be known as the leader who reversed the fortunes of Intel and created an unparalleled American chip factory?
So Intel is a risky gamble, but one that I am happy to make against this Rock-Bottom stock price. I even bought more Intel shares a few weeks ago and I am still interested in more.
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In rare cases, our expert team of analysts gives one “Double Down” Recommendation for companies that they think is about to pop. If you are worried that you have already missed your chance to invest, this is the best time to buy before it is too late. And the figures speak for themselves:
Nvidia:If you invested $ 1,000 when we doubled in 2009,You would have $ 360.040!**
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At the moment we are publishing “Double Down” warnings for three incredible companies, and there may not be a different chance soon.
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*Stock Advisor Return on February 3, 2025
Otherwise Bylund has positions in Intel, Micron Technology and Nvidia. The Motley Fool has positions and recommends advanced micro devices, Intel, Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: Short February 2025 $ 27 calls on Intel. The Motley Fool has a disclosure policy.
2 leading technical shares to buy in 2025 was originally published by the Motley Fool
