The Memory Shortage Is Minting Trillion-Dollar Companies—And the Fastest-Growing ETF in History

Micron’s shares jumped nearly 20% in a single day on Tuesday, catapulting its market value past $1 trillion. This surge followed SK Hynix’s stock rally on Wednesday, making it the second South Korean company to join the $1 trillion club after Samsung. The Roundhill Memory ETF (DRAM) has seen explosive growth, returning nearly 120% since its April debut and becoming the fastest-growing fund in history, hitting $10 billion in assets in just 43 days. The memory chip shortage, fueled by AI data center demand, has driven unprecedented gains across the sector. Micron’s earnings rose 770% year-over-year in its latest quarter, while Sandisk’s shares climbed nearly 4,000% over the past year. Western Digital and Micron have also surged by 920% and 840%, respectively, as prices for high-bandwidth memory chips and storage devices soar. DRAM’s success has spurred competition, with five ETF providers launching leveraged and inverse funds tied to its performance. The fund attracted $7.5 billion in investments last month, making it America’s third-most popular equity fund. Analysts suggest Micron remains undervalued, trading under 10 times forward earnings despite its massive gains. The memory shortage has become a critical bottleneck in AI infrastructure, pushing up prices and profits for key players. Investors see continued upside, with DRAM’s rapid growth reflecting broader optimism in AI-driven tech demand. The sector’s momentum has created a ripple effect, drawing attention to niche funds targeting memory chip exposure.