DRAM ETF Loses $1.97B as Memory Makers Face Bear Market
Roundhill Memory ETF faces 14 days of outflows while constituent stocks trade below peak valuations.
The Roundhill Memory ETF, identified by the ticker DRAM, has recorded outflows for 14 consecutive days, resulting in a total net redemption of over $1.97 billion within the last 30 days. According to data cited by GN stocks/shares-surge, the fund’s assets under management have declined to $26.9 billion. This capital flight mirrors the technical bear market affecting the fund’s primary holdings, which have collectively dropped more than 20% from their year-to-date highs.
The ETF’s recent performance reflects the broader weakness in the memory chip sector. The fund ended its latest trading week at $59.10, representing a 27% decline from its peak this year. Investors have shifted away from the vehicle, which tracks major industry players, as price pressure intensifies across the memory industry despite recent strong earnings reports.
Major Memory Manufacturers See Price Corrections
Constituent companies in the ETF have experienced significant drawdowns from their respective highs. Samsung Electronics, the largest holding, has slipped by more than 30% from its peak. SK Hynix, a leading producer of high bandwidth memory, has fallen nearly 40% from its year-to-date high. In the United States, Micron has dropped 22%, while SanDisk and Western Digital have declined by 30% and 45% from their all-time highs, respectively.
Revenue Growth Supports Current Valuation Metrics
Despite the price declines, fundamental performance remains robust due to the ongoing artificial intelligence boom. Micron reported third-quarter revenue of $40 billion and guided for fourth-quarter revenue exceeding $51 billion. SanDisk, Samsung, and SK Hynix also delivered strong financial results. SanDisk secured multi-year contracts worth over $90 billion with major hyperscalers, establishing both price floors and ceilings for its products and reducing industry seasonality.
Valuation multiples for these firms remain below sector averages, suggesting potential undervaluation. Samsung Electronics and SK Hynix trade at price-to-earnings ratios under 15, compared to the KOSPI Index average of 19. Micron’s forward P/E is 13.28, while SanDisk trades at 7.6. Kioxia also maintains a trailing P/E of 13. These metrics have prompted several companies to initiate large share buybacks, aiming to support shareholder value amidst the current market correction.
