The Roundhill Memory ETF (DRAM) is showing signs of a potential pullback after a prolonged consolidation phase, with shares trading at $57 on Friday, down roughly 30% from the year's high. The fund has posted seven consecutive days of outflows and lost more than $1.6 billion in assets over the last 30 days, according to ETF Db.
Despite strong fundamentals across major memory producers, investors have continued to exit. Samsung Electronics shares dropped to 252,000 won, well below their record high of 374,000 won, even after the company announced an $80 billion buyback and reported an $80 billion third-quarter profit. Micron Technology delivered a 379% fourth-quarter revenue surge to more than $54 billion and projected annual revenue of $275 billion, expanding to $320 billion a year later. Analysts also expect Micron to boost its buyback program by more than $50 billion in December once CHIPS Act restrictions end.
Other DRAM ETF components such as SK Hynix, Kioxia, SanDisk, and Western Digital have reported strong results and signaled accelerating earnings growth tied to artificial intelligence demand. However, valuations remain compressed: SanDisk trades at a forward P/E of 7.36, Micron at 8, and Western Digital at 19, compared with the S&P 500's average of 19.2. Samsung and SK Hynix also trade at single-digit multiples, partly reflecting fears that an AI bubble or memory oversupply could pressure the sector.
Technical analysis points to downside risk. The DRAM ETF has formed an ascending channel but sits near the lower boundary, below the 50-period exponential moving average, with the Relative Strength Index below the neutral 50 level. A break lower could target $50 before a potential rebound.
On Monday, memory-chip stocks came under additional pressure after China's ChangXin Memory Technologies announced key progress in a 4F square memory-cell design and plans to introduce a new server-memory product by the end of 2026. Micron fell nearly 5%, SK Hynix dropped 4%, and SanDisk declined 7% as investors assessed the competitive threat. CXMT's market share in global DRAM reached 10% in the second quarter of 2026, up from 4% a year earlier, while SK Hynix's share dropped to 25% from 39%. Samsung held the largest share at 38%, and Micron's share rose to 24%.
Analysts cautioned that CXMT still faces supply and qualification constraints, limiting its near-term impact. DA Davidson analyst Gil Luria raised his Micron price target to $3,000 from $2,100, citing long-term AI-driven memory demand and saying investors are still early in understanding Micron's growth trajectory.
