Despite the September Effect and early August market correction, the US stock market has largely recovered. The Dow Jones Industrial Average (DJI) hit a record high, while the tech-oriented Nasdaq Composite (IXIC) showed a positive trend. Let's take a look at some stocks that are currently considered undervalued.
Lam Research Corporation (NASDAQ: LRCX)
Alongside Taiwan Semiconductor Manufacturing Company (TSMC), Lam Research is a key player in the global semiconductor industry. Lam provides fabrication equipment for companies like Nvidia and Intel. The company develops advanced memory, chip packaging, and transistor production equipment like ALTUS and Syndion. With the rising demand for AI and new technologies, Lam Research is currently in an upcycle. In its Q2 2024 earnings, the company reported $1 billion net income versus $0.8 billion the previous year and raised its cash reserves to $5.85 billion. Nasdaq analysts forecast a significant price increase for Lam Research stock, with a target price of $1085.71 per share, indicating a potential upside of 40%.
Intel (NASDAQ: INTC)
Among the trio of Nvidia, AMD, and Intel, the latter stands out with its own manufacturing facilities. Recently, Intel has faced negative news regarding quality control issues with its 13th and 14th generation desktop CPUs. Despite this, Intel remains a strategic vehicle for US-based chip manufacturing. Intel's stock price is currently at $21.93 per share, significantly lower than the 52-week average of $36.11. Analysts predict that if Intel improves its financials, the stock price could rise to $42 per share.
iQIYI, Inc. (NASDAQ: IQ)
iQIYI, often called the Chinese Netflix, offers one of the cheapest investment opportunities in the streaming market. Unlike Netflix, iQIYI also provides ad-supported free access. In the latest quarter of 2024, the company reported a 5% decline in revenue to $1 billion, with a net income of $9.5 million. Currently, iQIYI shares are trading at $2 per share, which is half of their 52-week average of $4.08. The average price target from analysts is $3.59, representing a 71% potential upside.
September 2024 offers various investment opportunities in undervalued stocks of companies like Lam Research, Intel, and iQIYI. Despite current challenges, these companies show significant growth potential in the near future.
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