Global memory stocks hit hard by Google's new algorithm. Mizuho: This is precisely a buying opportunity!

Ask AI · Does a periodic pullback in memory stocks signal more upside?

CailianShe March 27 News (Editor Liu Rui) This week, prompted by the impact of Google’s new algorithm, storage-related stocks worldwide have been hit, sparking widespread anxiety among investors.

But Mizuho Technology expert Jordan Klein believes the current pullback in memory stocks is more like a “getting on board opportunity,” not a turning point in the stock price.

This is just a typical pullback

On Thursday in the U.S. Eastern Time, Klein wrote in a report that after the strong rally in 2025 and the start of 2026, “the bulls in memory stocks have started to waver.” Although the memory industry is always known for dramatic cyclical swings, he stressed that the recent sell-off fits a familiar pattern.

Mizuho Bank said: “This kind of sell-off happens every few months… It’s not a signal of a top, nor a reason to sell. In fact, buying on dips can make money.”

This week, Google’s newly released compression algorithm, TurboQuant, stunned the market. It is said to reduce at least 6 times the cache memory footprint used when large language models run, while improving performance by 8 times. Industry insiders expect that Google’s new technology could ease a shortage in memory supply, potentially lowering memory prices.

This news sent global memory stocks sharply lower this week. In the U.S. market, Micron’s stock price has already fallen nearly 20% from its peak. But Klein pointed out that since mid-2025, this is already the stock’s seventh time experiencing such a big drop; the declines in the prior six times were also between 14% and 21%, which is very similar to this one.

Klein noted that despite the repeated pullbacks, over the past half-year the stock has still gained more than 200% in total, highlighting the characteristic of the memory industry to rise amid volatility.

Micron’s stock price trend over the past year

He also said that Samsung Electronics remains his “favorite memory company,” and he is also bullish on the future upside potential of SK hynix and SanDisk Technology.

Klein emphasized that sellers driven by market momentum are overestimating the magnitude of the drop. “In fact, it’s exactly this kind of pullback and the resulting questioning that we want to see… If everyone is standing on the same side of the line, that would be a bad situation.”

He said that compared with memory chip stocks, a more attractive investment opportunity may lie in the field of memory chip equipment suppliers. Therefore, Klein lists ASML as the top pick, followed by Applied Materials and Lam Research. He believes these companies are poised to benefit from the accelerated expansion of DRAM capacity.

Although the new technology may still bring challenges and geopolitical risks may continue to impact the industry, Klein insists “I’m very confident… that their stock prices will rise over the next 3 to 6 months.”

(CailianShe, Liu Rui)