Undervalued semiconductor stockshave declined sharply in 2022, pushing many stocks to 52-week lows. Supply-chainissueshave yet to be ironed out and the 40-yearhigh inflation has only added to suppliers’ woes.
Despite these challenges, thedemand for semiconductors remains strong worldwide. Recent researchhighlightsthat the global semiconductor “market is projected to grow from $483.00 billion in 2022 to $893.10 billion by 2029, at a CAGR of 9.2% in forecast period.”
Presently, however, investoroptimism for semiconductor stocks is still subdued. Accordingly, thePHLX Semiconductor Sectorindexhas fallenaround 24% year-to-date (YTD). In comparison, theS&P 500index hasonlydropped14%.
Despite recent challenges, the semiconductorsectoris poised to gain significant ground in the future. Anincreasingnumber of industries, such as robotics, artificial intelligence (AI),electric vehicles (EVs)and household goodshave startedutilizingsemiconductors in new and exciting ways.
Micron Technology (MU)
- 52-week range: $63.21 – $98.45
Micron Technology(NASDAQ:MU) is highly regarded for its computer memory and data storage devices. The chip group specializes in dynamic random-access memory, flash memory, and USB flash drivesunder itsMicron, Crucial, and Ballistixconsumer brands.
At the end of March, Micron releasedQ2 FY22earnings. Revenue came in at $7.79 billion, compared to $6.24 billion theprevious year. Adjusted earnings per share (EPS) was $2.14, up from 98 centsa year ago. Adjusted free cash flow (FCF) was $1.03 billion.
Recently, the companyannouncedthe release of two newNVMe solid-state drives: the Crucial P3 Plus Gen 4 and the Crucial P3 Gen 3. These new drives incorporate the latestadvancements instorage technology, providing faster read/write speeds and up to four terabytes of storage.
MU stockhas lost 33.8% YTD. Forward price-to-earnings (P/E) and price-to-sales (P/S) numbers are 6.06x and 2.59x, respectively.Meanwhile, the12-month median forecast stands at$110.
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