Why 1 Little-Known ETF Is Riding the AI Chip Shortage

Key Points

• The Roundhill Memory ETF is one of the fastest-growing funds of all time by asset base accumulation.
• The fund is driven largely by investments in SK Hynix and Samsung, two South Korean companies each valued at more than $1 trillion that are major leaders in the memory chip space.
• Because these companies are difficult to access for retail investors in the United States outside of region-focused ETFs, Roundhill's fund provides a compelling means of building exposure.

Though much of investor interest in AI remains centered in major chatbot providers like Anthropic and OpenAI—or in data centers, which continue to proliferate at a rapid pace—an underlying technology vital to the industry could help to drive some of the biggest returns. AI-driven demand for memory chips continues to bloom, even as the global supply shortage dubbed "RAMmageddon" lingers.

With the global semiconductor memory market predicted to grow at an 11.6% compound annual growth rate to $240 billion by 2030, one recent exchange-traded fund is positioned to capitalize on the unique high-demand, low-supply scenario.

The Roundhill Memory ETF BATS: DRAM launched in early April, but has already surged to an incredible $12.8 billion in assets under management, making it one of the fastest-growing ETFs by AUM of all time. Interestingly, the fund has a highly focused portfolio of just about 18 names, which investors may want to watch closely as AI-driven memory demand continues to skyrocket.

A Closer Look at DRAM

Certainly, a direct investment in DRAM may be a good option for many retail investors.

Despite its moderately high expense ratio of 0.65%, the fund boasts not only massive inflows but also an exceptionally motivated base of traders: it enjoys a one-month average trading volume of about 32 million.

In the last month, the fund has returned over 60%.

While several of the top U.S.-listed holdings in DRAM's narrow portfolio actually have fairly significant downside potential—Western Digital Corp. NASDAQ: WDC, for instance, has a downside estimated of about 20%, while Micron Technology Inc. NASDAQ: MU is expected to fall by 40%—the two biggest holdings of all are not found on U.S. exchanges.

2 South Korean Firms Could Be Behind DRAM's Meteoric Rise

South Korean companies SK Hynix Inc. and Samsung Electronics Co OTCMKTS: SSNLF are the two largest holdings in DRAM's basket, representing about 27% and 20% of the portfolio, respectively.

SK Hynix in particular stands out for its rapid rise—the firm has seen shares more than triple year-to-date (YTD) and recently reached the $1 trillion market capitalization landmark. Samsung's market value is already well above $1 trillion, having achieved this status earlier in May 2026.

SK Hynix is known as a maker of high-bandwidth memory chips used predominantly in AI settings and is thriving as a primary supplier to NVIDIA Corp. NASDAQ: NVDA and others leading the AI infrastructure buildout. With the latest share price surge, driven by a rapid increase in memory chip prices as demand has not let up, SK Hynix is one of three Asian companies to have a $1 trillion valuation.

Samsung is the largest memory chip maker in the world, despite being better known to many customers globally for its consumer electronics products. The firm has also positioned itself as a go-to supplier for major AI infrastructure firms in the United States and abroad as the price of memory chips has skyrocketed.

The Benefits of DRAM

For investors keen to reap the rewards of these two South Korean companies, a direct investment from the United States is difficult. While an investment in depositary receipts may be possible, the easier path is an ETF. However, gaining sufficient exposure to SK Hynix or Samsung may require more than a simple total market fund or even a South Korea-focused ETF. The iShares MSCI South Korea ETF NYSEARCA: EWY does set SK Hynix and Samsung as its two largest holdings.

Still, the breadth of industries represented across the rest of the portfolio may not appeal to investors seeking a particular focus on AI and memory chips in particular.

This is where DRAM shines. While it does hold a handful of other makers of memory chips, these stocks tend to have much smaller positions of 6-7% or lower. The major movers in DRAM's basket are certainly SK Hynix and Samsung. Add to that the fact that the fund focuses exclusively on memory chip makers, and it becomes a compelling vehicle for investors to gain access to two high-flying South Korean names without giving up a focus on this high-growth industry.

Still, to be sure, investors looking to focus on AI have a host of other ETF options, including other funds that hold either or both SK Hynix and/or Samsung. DRAM's recent launch and fast rise in popularity make it stand out for the time being, but the quick shifts in the AI landscape make it necessary for investors to keep a close watch on the space.