TLDR
- Mizuho’s Jordan Klein identifies memory stock declines as recurring patterns that present buying opportunities rather than warning signals
- Micron shares have declined approximately 17% from recent peaks, consistent with six previous corrections ranging from 14–21% since mid-2025
- Klein recommends Samsung, SK Hynix, SanDisk, ASML, Applied Materials, and Lam Research as prime investment targets
- Morgan Stanley analyst Joseph Moore characterizes memory as “the primary constraint on AI demand,” suggesting current valuations are excessive
- Analysts anticipate significant upward movement in these stocks within coming months, fueled by AI-related memory requirements
Those concerned about this week’s decline in memory semiconductor stocks may be overreacting, suggest a pair of prominent Wall Street analysts who see familiar patterns at play.
In a Thursday research note, Mizuho technology analyst Jordan Klein observed that the “memory long trade is starting to wobble big time” following impressive gains throughout 2025 and into early 2026.
Yet Klein maintains a calm perspective. He characterizes these periodic declines as routine occurrences that don’t indicate market tops.
“Not a signal of peak nor any reason to dump,” Klein noted. “Actually you make money buying these dips.”
Micron Technology shares have retreated roughly 17% from their post-earnings peak. Klein highlights that this correction aligns with six previous drawdowns between 14–21% observed since mid-2025.
Despite these fluctuations, the equity has delivered gains exceeding 200% during this timeframe.
Klein contends that momentum-driven profit-taking exaggerates the apparent weakness. He maintains that broad skepticism actually supports the investment thesis.
“What is worse is when everyone is all on the same side,” he explained.
Equipment Manufacturers Present Strongest Entry Opportunities
On the memory manufacturer front, Klein singles out Samsung Electronics as his preferred individual selection. He also identifies potential in SK Hynix and SanDisk.
However, he suggests equipment suppliers present the most compelling opportunities. Klein designates ASML as his top equipment pick, with Applied Materials and Lam Research following closely.
He believes these firms are strategically positioned to capitalize on expanding DRAM production capacity.
Klein stated he is “very confident that in 3–6 months they are all higher.”
Morgan Stanley: Memory Represents Critical AI Infrastructure Constraint
Morgan Stanley’s Joseph Moore expressed comparable sentiments Wednesday. He characterized the downturn as “a healthy pricing in of durability concerns” while challenging notions that momentum is weakening.
Moore informed clients that memory availability has become “increasingly THE primary constraint on AI demand.” This perspective positions memory not merely as benefiting from AI investment, but as a fundamental limiting factor.
He specifically addressed Google’s “TurboQuant” memory optimization initiative. Following consultations with industry sources, Moore determined it represents “an evolutionary development, with basically no surprises for memory.”
Moore also emphasized the cash generation capabilities at Micron and SanDisk. He projected that annual cash flow at present earnings could represent 15–25% of their total market capitalizations.
“While it won’t last forever, it is going to last for long enough to see the stocks move materially higher,” Moore affirmed.
