A Bull Market Is Here: 2 Brilliant Stocks Down 35% and 43% to Buy Right Now

Market Overview - Strong corporate earnings, potential tax cuts, and AI excitement are driving the stock market rally, with the S&P 500 up 26% and the Nasdaq Composite up 34% over the last year [1] - Tech giants like Nvidia, Apple, and Microsoft are pushing major indexes to new highs, but other high-quality companies trading at discounts should not be overlooked [1] Micron Technology (MU) - Micron is a leading provider of storage and memory technologies, including AI-related memory chips, with high-bandwidth memory (HBM) as a key growth driver [3] - The company beat expectations in its December earnings report, posting EPS of $1.79 on$8.71 billion revenue, with AI-related data center segment revenue up 400% [4] - Micron's guidance for the current quarter fell short of Wall Street expectations, with EPS of $1.43 on$7.9 billion revenue, compared to forecasts of $1.91 EPS on$8.98 billion revenue [5] - Management cited softness in consumer memory categories and inventory adjustments as reasons for the underwhelming guidance, but the company's growth story remains intact [6] - AI memory solutions are becoming the key element in Micron's stock story, with the HBM market expected to grow from $16 billion in 2024 to$100 billion in 2030 [7][9] - Micron plans to launch its HBM4 memory chip in 2026 and HBM4E in 2027 or 2028, which are expected to be incorporated into next-gen GPUs from Nvidia and AMD [8] ON Semiconductor (ON) - ON Semiconductor stock is down 19% over the last year and 43.4% from its all-time high, primarily due to struggles in its key end markets of automotive (especially EVs) and industrial [10] - The industrial manufacturing sector has been slowing since 2022, and high interest rates have made car loans more expensive, impacting ON Semiconductor's power technology chips used in EVs and sensing technologies used in ADAS and industrial automation [11] - Despite near-term challenges, the company's end markets remain attractive and aligned with long-term megatrends such as EVs, ADAS, and smart connected technology in the industrial world [12] - Wall Street analysts expect 2024 to be a trough year for ON Semiconductor's earnings, with recovery in 2025, and the stock is trading at less than 16 times expected 2024 earnings, representing a good value for a bottom-of-the-cycle earnings growth stock [13]