Technology shares have risen in 2024. The technology sector may have stopped in recent weeks, however Nasdak(Nasdaqindex: ^IXIC) The market index is still hovering slightly less than the highest standard levels it reached in December.
But high stock prices did not reach every corner of the technology market. Two legendary leaders are trading with large discounts on their peaks for 52 weeks. Read to see why you should take a deeper look at the old warriors in the semi -conductors Micron technology(Name: MU) and Intel(Nasdaq: intc) now.
Micron greatly benefits from the mutation of artificial intelligence (AI). In particular, the systems used to train or operate AI Tolide Tools require a lot of memory.
This is true even for Deepseek, the Great Language model (LLM) is known for its low devices. AI Accessor cards that operate the latest Deepseek V3 version of more than 1.5 TB of high -speed video memory (VRAM). Lighter models of a fat laptop can be managed, but even Deepseek V2 236B low -quality should contain more than half a TB of video memory. This is difficult to match one system, especially a laptop. The largest RAM for the laptop offered for sale today at 48 GB (GB), while servers can get their digital hands on 256 GB cards.
This is a system of resources. The most ambitious models such as Chatgpt of Openai use orders with greater ability of treatment and memory. These large iron solutions do not disappear. Remember that the lighter Deepseek system is only possible because it can take advantage of the work it is already doing with Solutions.
Therefore, Micron's share fell along with the fastest Amnesty International designer Nafidia(Nasdaq: nvda) When Dibsic hit the world theater in January. In fact, Micron shares took a deeper haircut than NVIDIA. It can be said that the arrow is less than its value before Dibsic discount.
Today, the stock changes in their hands by only 9 times from the profit estimates forward, according to Finviz. These estimates are 50 % more optimistic than the current profit operating rate, which Micro is traded with complications of 13x. On the condition The administration expects A “big record of revenue” and a much better profitability in the fiscal year 2025 that was just started, which appears to be a reasonable assumption.
Sales increased by 84 % on an annual basis in the latest profit report, while the final result swing from a strong loss to a strong net profit. Micron on the right path to achieve strong growth in 2025, and the share price does not reflect this upward reality yet.
Intel is a different story. The veteran passes through the semiconductors with a lot of changes, and loses the market share for the competitors for a long time NVIDIA and Advanced small devices(Nasdaq: AMD)And operate the transformation of an expensive strategy under the temporary management team. It is a lot, even for the innovator globally with deep pockets.
But the Intel mode is less magnificent than the stock scheme suggests. Intel shares are traded just hair higher than the book value, which is a usually dedicated assessment of companies on bankruptcy. But Intel is not like that. He is still a market -pioneer maker for server system processors and computers, not to mention the respectable Gaudi line of AI's accelerators. During the next five years, the strategic shift must lead to the work of global chips on a global level often located on American soil.
This is a promising position. Taiwan manufacturing semiconductors(Nyse: tsm) He is the global pioneer in that industry today. The value of its stock is about 8 times the enormous value of its defense. I do not say that Intel will match this evaluation rate within a few years, but it certainly deserves a number higher than the percentage of deals you get today.
Yes, many things will need to go right as Intel explores a completely different strategy. A lot of future success of the company depends on finding the appropriate CEO for the constant acute strategy rotation. However, the INTEL legend should not face a problem to find a first -class administrative talent. Who does not like to be known as the leader who turned Intel's fortunes around and created an unparalleled American chips?
So INTEL is a risky bet, but I am happy to make it at this rock bottom price. In fact, I bought more Intel shares two weeks ago, and I am still interested in seizing more.
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*The stock consultant dates back from February 3, 2025
Anders Bellond It has functions in Intel, Micron Technology and Nvidia. Motley Fool has positions in advanced Micro, Intel, NVIDIA, and Taiwan seiConductor manufacturing. Motley Fool recommends the following options: February 2025 palaces $ 27 calls on Intel. Motley deception has Disclosure.
