SNDK, STX, MU, WDC Rally Powers First Dedicated Memory ETF To $1B AUM In Under Two Weeks

• Micron, Seagate, Western Digital, and SanDisk gained sharply in April, underscoring continued interest in the sector.
• SanDisk joined the Nasdaq-100 on Monday. 
• The Roundhill Memory ETF (DRAM) has gained 30% since its launch on April 2.

The Roundhill Memory ETF (DRAM), the first dedicated fund tracking memory chip stocks, on Monday announced that it had crossed $1 billion in assets under management.

The milestone, coming just 10 days from the launch of the fund, underscores the incredible investor interest in memory semiconductors. Major players such as Micron Technology, Seagate Technology Holdings, Western Digital Corp., and SanDisk Corp have gained sharply in recent weeks.

WDC, STC, and MU are among the top 10 stocks on the Nasdaq-100 so far this month; SNDK secured a place in the index on Monday.

To be sure, memory chip stocks have been on a roll for about a year, as surging demand from AI data centers has driven shortages and price gains across the industry. Analysts are calling it a “supercycle,” rather than the industry’s typical cyclical pattern, with expectations that demand will remain strong for the next few years.

Since April 2, DRAM (the fund’s ticker symbol, which is the same as the acronym for a memory component designed for short-term data storage) has averaged $213 million in daily trading volume and over 11,000 in option contracts traded per day, Roundhill said in a statement. 

In this period, the per-unit price of the ETF has increased from $27.76 to $ 35.07, marking a 30% increase. 

Besides the major U.S. companies, DRAM allows investors exposure to Korean heavyweights Samsung Electronics and SK Hynix, which together account for the majority of global DRAM and HBM production.

"The memory sector sits at the critical intersection of AI demand and constrained supply, yet for most U.S. investors it has remained out of reach," said Dave Mazza, CEO of Roundhill Investments. 

"DRAM was built specifically to address that disconnect. Reaching $1 billion in assets within 10 trading days reflects how decisively investors have embraced it as the solution they've been waiting for."

On Stocktwits, the retail sentiment for DRAM dropped to ‘extremely bearish’ early Tuesday, from ‘neutral’ the previous day.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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