Investing.com -- Jordan Klein, Mizuho's TMT sector specialist, said in a note on Tuesday that investors are overreacting to Samsung's preliminary second-quarter results, arguing that the sell-off in semiconductor stocks reflects momentum unwind rather than fundamental deterioration.

Klein said that while Samsung's revenues may have missed expectations, operating profit was "a strong beat if you exclude one-time bonus expenses," estimating implied memory operating margins of over 80%.

"That OP in a single quarter is more than Samsung reported in total for past three years combined," he said, adding that reacting to Samsung's stock moves on preliminary results "is extremely short-sighted."

Klein argued that Samsung's weaker-than-expected revenues are "more likely due to mobile devices, TVs, LCD panels" rather than memory, and that what matters for the stock will be "Samsung's comments and outlook for the memory business and industry into 2H26," due at the end of July.

On broader memory pricing, Klein said reports point to third-quarter DRAM and NAND pricing "looking very strong vs Q2 levels," with some forecasts suggesting NAND could rise 35-40% quarter-on-quarter.

Klein said TSMC and ASML results due the following week "will matter way more for semi price action vs Samsung prelims." He said he feels "very good overall about fundamentals and longer-term outlook for both," adding that valuations for both companies "look very attractive."

On the CPU outlook, Klein stated that a bullish server CPU forecast from Asian hardware analyst Dale Gai makes him "more bullish on Intel and the CPU semi call as well as DRAM suppliers," while also viewing dips in AMD as buying opportunities ahead of the company's July 23 AI event.