‘Peak Memory’ Panic Is ‘Overblown’ Says Mizuho: Buy the Sandisk Stock Dip

Mizuho Securities (MFG) recently announced that the dip in memory stocks offers a “Buy” opportunity, especially for Micron (MU) and SanDisk Corporation (SNDK). But this isn’t just another ‘buy the dip’ call. The firm explains the bull thesis in a way that every investor, especially those scared of volatility and buying at peak, needs to listen to.

After calling the fears about declining memory usage in AI infrastructure ‘overblown’, analysts at Mizuho explained that TurboQuant’s success is a bull thesis, not a bear thesis, as many are calling it out to be. Vijay Rakesh, in a note to clients, pointed out that improvements in technology often result in an increase in demand rather than a decrease. For instance, virtual machines were expected to reduce server demand, but had the opposite impact. DeepSeek’s low-cost AI training gave rise to fears that companies in the U.S. might be overspending. While that was true, the low cost only resulted in an accelerated AI growth, resulting in even higher spending, especially from the likes of Microsoft (MSFT), OpenAI, and Meta Platforms (META). Similarly, the use of fiber optics instead of copper may offer 10 times the bandwidth, but this could again result in higher spending rather than lower.