After a sharp selloff in early August, Micron (NASDAQ:MU) is attracting buyers. The DRAM and NAND chip supplier trades at a steep discount to the Nasdaq that is too low to ignore. Investors should consider this tech stock.
Micron faces no memory downturn ahead. Semiconductor chips are in such short supply that computer makers cannot fulfill orders for weeks. Suppliers may raise prices to increase margins. Micron has room to take advantage of the supply shortage.
In the mobile chip segment, Qualcomm (NASDAQ:QCOM) is stuck in a trading range. Markets fret over Apple (NASDAQ:AAPL) building chips in-house and Google Pixel (NASDAQ:GOOGL) devices excluding Qualcomm chips. But Google smartphone CPUs need Qualcomm’s patents and must pay for their use. QCOM stock is trading at a discount and would suit tech investors.
Intel (NASDAQ:INTC) is a perpetual disappointment. Years of delays for its CPU manufacturing to a smaller node are hurting the company. Intel got lucky with chips in short supply. It may sell current-generation chips and enjoy high profit margins. The stock also pays a dividend that yields around 2.5%.
Investors may consider Intel stock ahead of its earnings report. When it rallies, investors may sell the stock before the report and before it falls. After it dips again, the stock gives value investors another good entry point.
Tech Insider
