Samsung, SanDisk, ASML Named Top Picks as Memory Dip Deepens

TLDR

• Mizuho analyst Jordan Klein says memory stock pullbacks happen every few months and are buying opportunities, not sell signals
• Micron is down roughly 17% from post-earnings highs, in line with six prior dips of 14–21% since mid-2025
• Klein’s top picks include Samsung, SK Hynix, SanDisk, ASML, Applied Materials, and Lam Research
• Morgan Stanley’s Joseph Moore says memory is “the primary constraint on AI demand,” making the selloff look overdone
• Both analysts believe the stocks will be materially higher in the months ahead, supported by AI-driven memory demand

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Investors watching memory stocks fall this week may be worried for nothing, according to two Wall Street analysts who say the dip fits a well-worn pattern.

Mizuho tech specialist Jordan Klein wrote in a note on Thursday that the “memory long trade is starting to wobble big time” after a strong run through 2025 and early 2026.

But Klein is not sounding the alarm. He says these pullbacks happen every few months and are not a sign of a peak.

Micron Technology is down roughly 17% from its post-earnings highs. Klein points out this fits within the range of six prior drops of 14–21% seen since mid-2025.

Micron Technology, Inc., MU

Despite that volatility, the stock is still up more than 200% over the same period.

Klein says momentum-driven sellers are making the situation look worse than it is. He argues that widespread skepticism is actually healthy for the trade.

Memory Equipment Stocks Could Offer the Best Entry Point

Klein’s top single pick on the memory side is Samsung Electronics. He also sees upside for SK Hynix and SanDisk.

But he says the strongest opportunity may be in equipment suppliers. Klein calls ASML his top pick in that space, followed by Applied Materials and Lam Research.

He argues these companies are well-placed to benefit from rising DRAM capacity additions.

Morgan Stanley: Memory Is the Core Bottleneck for AI

Moore told investors that memory supply is “increasingly THE primary constraint on AI demand.” That framing positions memory not just as a beneficiary of AI spending, but as a critical gating factor.

He addressed Google’s “TurboQuant” memory optimization project directly. After speaking with industry contacts, Moore said it is “an evolutionary development, with basically no surprises for memory.”

Moore also highlighted the cash generation potential at Micron and SanDisk. He said annual cash flow at current earnings levels could reach 15–25% of their market caps.

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