Key Takeaways
- Jordan Klein from Mizuho characterizes recent memory stock corrections as cyclical patterns that present buying opportunities rather than warning signs
- Micron has experienced approximately 17% decline from recent post-earnings peaks, consistent with six previous corrections ranging from 14–21% since mid-2025
- Preferred investments according to Klein include Samsung, SK Hynix, SanDisk, ASML, Applied Materials, and Lam Research
- Joseph Moore from Morgan Stanley identifies memory as “the primary constraint on AI demand,” suggesting current valuations are excessive
- Analysts expect substantial upward movement in these stocks over coming months, driven by AI-related memory requirements
Concerns over declining memory stock valuations this week may be premature, suggest two prominent Wall Street analysts who identify a recurring historical pattern.
Jordan Klein, technology analyst at Mizuho, noted Thursday that the “memory long trade is starting to wobble big time” following robust performance throughout 2025 and into early 2026.
Yet Klein maintains a bullish outlook. He characterizes these periodic corrections as normal market behavior rather than indicators of fundamental deterioration.
“Not a signal of peak nor any reason to dump,” Klein stated. “Actually you make money buying these dips.”
Micron Technology has declined approximately 17% from its post-earnings peak. Klein notes this correction aligns with six comparable pullbacks ranging between 14–21% observed since mid-2025.
Notwithstanding this volatility, the stock has delivered returns exceeding 200% during the same timeframe.
Klein attributes the exaggerated downturn to momentum-driven traders exiting positions. He contends that prevailing market skepticism actually supports the investment thesis.
“What is worse is when everyone is all on the same side,” he explained.
Equipment Manufacturers Present Compelling Value Proposition
Klein identifies Samsung Electronics as his preferred individual selection within the memory sector. He also maintains positive outlooks for SK Hynix and SanDisk.
However, he believes equipment providers represent the most attractive investment opportunity. Klein designates ASML as his premier choice among equipment stocks, with Applied Materials and Lam Research following closely.
He contends these firms are strategically positioned to capitalize on expanding DRAM capacity installations.
Klein expressed being “very confident that in 3–6 months they are all higher.”
Morgan Stanley: Memory Supply Constrains AI Expansion
Joseph Moore, analyst at Morgan Stanley, shared comparable perspectives Wednesday. He characterized the recent selloff as “a healthy pricing in of durability concerns” while rejecting suggestions that underlying strength is diminishing.
Moore informed clients that memory availability is “increasingly THE primary constraint on AI demand.” This perspective positions memory not merely as benefiting from AI investment, but as an essential 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 cash generation capabilities at Micron and SanDisk. He projected annual cash flows at present earnings levels could represent 15–25% of their respective market capitalizations.
“While it won’t last forever, it is going to last for long enough to see the stocks move materially higher,” Moore concluded.
