Memory Boom Fuels DRAM ETF's Sprint To $10 Billion, But Risks Remain

The Roundhill Memory ETF (CBOE: DRAM) continued its strong momentum last week, helped by the strong demand for memory products as the artificial intelligence (AI) boom continued. 

Roundhill Memory ETF Demand Is Nearing $10B AUM

DRAM jumped to a record high of $55, up by 90% from its listing price in early April this year. It is matching towards the $10 billion assets level, making it one of the fastest-growing ETFs ever. 

The surge has coincided with the rising demand for companies in the memory chip industry. This growth is expected to accelerate in the coming years as hyperscalers continue their capital expenditure spending. 

Most companies in the ETF have reported strong financial results recently. For example, the most recent earnings showed that Micron (NASDAQ:MU) revenue surged to $23.86 billion in the fiscal second quarter, up sharply from $8 billion in the same period last year. 

Similarly, Sandisk (NASDAQ:SNDK) said that its revenue jumped by 97% QoQ to $5.95 billion in the fiscal third quarter. It rose by 251% YoY, with the higher prices boosting its profit margins. 

Seagate Technologies (NASDAQ:STX) jumped to $3.11 billion in Q3 from $2.16 billion in 2025. Other large companies in the fund also published strong financial results, pushing their stocks to record highs.

These metrics explain why the ETF has accumulated billions of dollars since the first week of April. Data shows that the fund added over $3.6 billion in inflows this week, higher than the $2.7 billion a week earlier.

DRAM ETF Faces Three Major Risks

The ongoing DRAM momentum faces some major risks. The most important one is that the AI bubble may burst in the near future as Michael Burry has warned. He compared the ongoing hype to the dot-com bubble that burst in early 2000s.

Second, there are signs that the ETF has formed a bearish divergence as the Relative Strength Index (RSI) has moved from the extreme overbought level of 88 to the current 58. 

The Average Directional Index (ADX) has also dropped from 58 to 42, a sign that the bullish momentum is fading. Therefore, there is a risk that the fund will pull back further in the near term as investors start booking profits.

Finally, the fund faces some major concentration risks. The fund has 14 companies, with the top three – Sk Hynix, Micron, and Samsung – having a 70% share. As such, a major issue in one of these three companies would have a negative impact on the fund. 

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