Investing.com — A pullback in major memory names has prompted fresh investor anxiety, but Mizuho tech specialist Jordan Klein argues the weakness looks more like an opportunity than a turning point.
Klein wrote in a note on Thursday that the “memory long trade [is] starting to wobble big time” after a powerful run through 2025 and early 2026.
But despite the sector’s reputation for violent cycles, he stresses that recent selling fits a familiar pattern.
According to Mizuho, “these sell-offs happen every few months… Not a signal of peak nor any reason to dump. Actually you make money buying these dips.”
The pullback in Micron Technology, down roughly 17 percent from post-earnings highs, is in line with six prior drops of 14–21 percent since mid-2025.
Klein notes that over the same period the stock is still up more than 200 percent, underscoring the sector’s volatility.
He adds that Samsung Electronics remains his “favorite single memory long,” while he also sees upside for SK Hynix and SanDisk.
Klein emphasises that momentum-driven sellers are exaggerating the downside. “You want these sort of pullbacks and skepticism… What is worse is when everyone is all on the same side.”
The more compelling opportunity, he says, may be in equipment suppliers. Klein calls ASML his top pick, followed by Applied Materials and Lam Research, arguing these names are positioned to benefit from accelerating DRAM capacity additions.
While geopolitical risk could still jolt the sector, Klein concludes he is “very confident… that in 3–6 months they are all higher.”
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