TLDR
- Jordan Klein of Mizuho characterizes memory stock corrections as cyclical events that create purchase windows rather than exit signals
- Micron has declined approximately 17% from recent earnings peaks, matching six previous corrections ranging from 14–21% since mid-2025
- Preferred investments from Klein feature 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
- Both market experts anticipate substantial price appreciation in coming months, driven by artificial intelligence memory requirements
Those monitoring this week’s decline in memory semiconductor equities may be unnecessarily concerned, per two prominent Wall Street experts who identify the pattern as historically consistent.
Jordan Klein, Mizuho’s technology sector analyst, noted Thursday that the “memory long trade is starting to wobble big time” following sustained gains throughout 2025 and into early 2026.
Yet Klein isn’t raising red flags. His analysis suggests these periodic retreats occur regularly and don’t indicate market tops.
“Not a signal of peak nor any reason to dump,” Klein stated. “Actually you make money buying these dips.”
Micron Technology has shed approximately 17% from its earnings-driven peaks. Klein notes this decline aligns with six comparable drawdowns spanning 14–21% observed since mid-2025.
Notwithstanding such fluctuations, shares remain elevated more than 200% across the identical timeframe.
Klein attributes momentum traders to exacerbating the appearance of weakness beyond fundamentals. His perspective frames broad skepticism as constructive for positioning.
“What is worse is when everyone is all on the same side,” he noted.
Equipment Manufacturers May Present Optimal Value
Klein identifies Samsung Electronics as his preferred individual memory selection. He similarly anticipates gains for SK Hynix and SanDisk.
However, equipment providers may deliver superior returns. Klein designates ASML as his leading equipment choice, with Applied Materials and Lam Research following.
He positions these firms as optimally situated to capture expanding DRAM production investments.
Klein expressed being “very confident that in 3–6 months they are all higher.”
Morgan Stanley: Memory Functions as Critical AI Constraint
Joseph Moore, Morgan Stanley’s semiconductor analyst, presented comparable conclusions Wednesday. He characterized the downturn as “a healthy pricing in of durability concerns” while rejecting narratives of weakening fundamentals.
Moore informed clients that memory availability represents “increasingly THE primary constraint on AI demand.” This framework establishes memory not merely as an AI infrastructure beneficiary, but as a fundamental limiting factor.
He specifically addressed Google’s “TurboQuant” memory efficiency initiative. Following industry consultation, Moore classified it as “an evolutionary development, with basically no surprises for memory.”
Moore further emphasized cash generation capabilities at Micron and SanDisk. He projected annual free cash flow at prevailing profit levels could represent 15–25% of current market capitalizations.
“While it won’t last forever, it is going to last for long enough to see the stocks move materially higher,” Moore determined.
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