Do you have $6,000? These three stocks could be bargain purchases from 2025 onwards
Many tech stocks have skyrocketed to hit highs over the past year amid hopes of deeper interest rate cuts and improving the macroeconomic environment. However, in this volatile bull market, it may be difficult to find bargains traded at a reasonable valuation.
average Robin Hood Market With an investment account worth around $6,000, it might be appealing to chase after the best growth stocks for maximum revenue. However, when the bear market begins, its strategy could backfire.
So instead of chasing the hottest stocks, investors can split their $6,000 investment into three cheap high-tech stocks that are undervalued compared to their growth potential: Memory Chip Maker Micron Technologies (Name: mu)Mobile chip maker Qualcomm (NASDAQ: QCOM)and the networking giant Cisco (NASDAQ: CSCO). Here’s why buying these three bargains is worth a closer look at the start of 2025:
Micron is one of the world’s leading manufacturers of DRAM and NAND. Memory chip. Although neither market leads, it produces a more denser and more densely efficient chip than two large Korean competitors, Samsung and SK Hynix.
The memory market is cyclical. With PC shipments falling and the 5G smartphone upgrade cycle ending, the latest decline occurred in 2023, with more companies curbing data centre spending due to wider economic headwinds. In fiscal year 2023 (ends in September 2023), Micron’s revenues plummeted 49% as they acquired an annual net loss.
However, in 2024, its revenues skyrocketed 62%, making it profitable again. That growth was driven by the stabilization of the PC and smartphone market and data centers that upgrade servers to handle the latest generation AI applications.
Analysts expect its revenue and adjusted earnings per share (EPS) to increase by 40% and 434% in fiscal year 2025, respectively, as the momentum continues. These are the incredible growth rates of stocks traded with just 13 times the advance revenue. The micron valuation could be compressed by short-term concerns about export curbs and tariff contenders, but once these tensions subside, it could be a major bargain at these prices.
Qualcomm is one of the world’s leading producers (SOCS) and baseband modems for mobile systems on chips. It also owns a large portfolio of wireless patents, offering cuts for each smartphone sold worldwide, including chip-free devices.
Qualcomm ranks second in the smartphone SOC market after MediaTek, but Snapdragon SoC still dominates the premium Android market. Also on sale 5G baseband Modems to businesses like applecustom chips for connected vehicles and Internet of Things (IoT) devices, and CPUs for Windows PCs and servers.