A pronounced dip in large memory stocks has unsettled some investors, yet Mizuho technology analyst Jordan Klein contends the weakness is more consistent with cyclical, momentum-driven selling than an inflection point for the industry.
In a note published Thursday, Klein cautioned that the "memory long trade [is] starting to wobble big time" after a strong run through 2025 and into early 2026. He qualified that characterization by framing the latest declines as part of an established pattern in the sector.
"These sell-offs happen every few months... Not a signal of peak nor any reason to dump. Actually you make money buying these dips," Klein wrote, arguing that periodic pullbacks are commonplace and can create entry points for investors.
He cited Micron Technology as an example of that volatility. Micron is down roughly 17 percent from its post-earnings highs, a retrenchment that aligns with six prior drops of 14-21 percent since mid-2025. At the same time, Klein noted the stock remains more than 200 percent higher over that same timeframe, underscoring both the magnitude of recent gains and the swings that can follow.
Within the memory landscape, Klein singled out Samsung Electronics as his "favorite single memory long," and also expressed a positive view toward SK Hynix and SanDisk. He said momentum-driven sellers are amplifying the downside, and added: "You want these sort of pullbacks and skepticism... What is worse is when everyone is all on the same side."
Beyond the chipmakers themselves, Klein suggested the more compelling opportunities might lie with equipment suppliers. He placed ASML at the top of his list, followed by Applied Materials and Lam Research, arguing those firms are well positioned to benefit from accelerating DRAM capacity additions.
He did, however, acknowledge that geopolitical risk remains a potential disruptor for the sector. Even so, Klein concluded he is "very confident... that in 3-6 months they are all higher," expressing a firm near-term outlook for the names he discussed.
Advertising disclosure included in the source material noted the availability of a separate AI-driven stock-screening product. That section evaluated Applied Materials in the context of an AI tool that reviews companies using multiple financial metrics and referenced historical winners cited in the original material, including Super Micro Computer (+185%) and AppLovin (+157%).
The current episode in memory stocks highlights two dynamics for market participants: pronounced short-term volatility among memory chip makers, and potential upside for capital-equipment suppliers if DRAM capacity expansion accelerates. Investors watching this space will likely be monitoring momentum flows, producer guidance and geopolitical developments that could alter the near-term outlook.