Quick Read
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Memory stocks are undergoing a correction
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This could quickly reverse, just as it did multiple times in the past few years, that too from deeper declines
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If Micron’s CEO is right, you could see these ETFs surge through 2027
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Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Micron Technology didn’t make the cut. Grab the names FREE today.
Micron’s (NASDAQ:MU) Fiscal Q3 2026 results include something you should look into a little more closely. The company’s CEO said, “We expect tight conditions to persist beyond calendar 2027…” The tight conditions here refer to the supply crunch for DRAM and NAND, which has led to MU stock soaring by 176% year-to-date.
Of course, the stock has cooled significantly from its peak, and many other related stocks have taken a dive, but if he’s right, we could soon see a reversal. Memory businesses may have much more pricing power and growth left before any cyclical slowdown or downturn.
Past selloffs of this scale have led to an even bigger surge down the line. Micron isn’t too big yet for this to happen, given it’s still a sub-$1 trillion company (albeit by a hair) and trades at a 6x forward PE ratio.
Here are three memory stock ETFs to look into if the company’s CEO is right about the memory cycle being longer:
Roundhill Memory ETF (DRAM)
The Roundhill Memory ETF (BATS:DRAM) is the first pure-play ETF focused on memory and storage chip makers. This ETF remains the most popular way to play the memory trade, and I have no doubt DRAM will surge if the memory rally continues through 2027 or plunge if the cyclical downturn hits earlier. If you believe Micron’s CEO, the latter is less likely.
Before making a decision, the biggest thing to keep in mind is China. If the U.S. government allows major companies to import components freely from there, you’re going to see a massive influx of Chinese components.
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But that doesn’t mean the supply crunch is entirely artificial due to U.S. policy.
China does not have the advanced EUV lithography machines for the highest-end memory chips, so they can only brute-force the mass production of standard consumer memory. Many memory makers have already exited those fields, so I expect the DRAM ETF’s holdings to continue climbing as long as AI spending remains solid.
The DRAM ETF is up 91% year-to-date. It was up 191% at one point but has cratered since. Its largest holdings are a mix of U.S. and non-U.S. memory makers.
