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Likely Short-Term ETF Winners & Losers Amid Google Breakthrough
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Key Takeaways
TurboQuant cuts AI memory needs, boosting sentiment for AI-focused ETFs.
Memory-linked ETFs drop on fears of softer demand, despite solid outlook.
Analysts see short-term profit-taking, not a structural hit to chip demand.
Google’s new “TurboQuant” technology recently claimed that it can reduce memory usage for large language models by at least sixfold, which in turn could cut the overall cost of training artificial intelligence (AI), per Bloomberg, as quoted on Yahoo Finance.
Since memory is a critical component in AI hardware – especially in systems powered by NVIDIA Corp. NVDA — the announcement initially raised fears of weaker demand for memory. Following the news, shares of memory manufacturers sold off.
Analysts at JPMorgan Chase & Co. noted that while the news may trigger short-term profit-taking, it does not pose a near-term threat to memory demand, as mentioned in the above-said source.
Against this backdrop, below we highlight a few likely winners and losers in the exchange-traded fund (ETF) space from a short-term perspective.
Short-Term Winners
Roundhill Generative AI & Technology ETF (CHAT - Free Report)
The fund added 2.1% on March 25, 2026 and advanced about 1% after hours. And why not? The Alphabet Inc. (GOOGL - Free Report) unit’s recent claim is likely to boost AI payoffs – an area where investors have recently had doubts. Most market watchers have been worried about massive investments made in the AI space lately, which have yet to deliver sufficient returns. Many investors remain skeptical about the payoff timeline.
According to Morgan Stanley analyst Shawn Kim, the above-said technology enhances returns for hyperscalers by improving cost efficiency and performance. The move could accelerate adoption of AI workloads. With Magnificent Seven companies committed to AI, the ETF may now have room to run. MAGS ETF gained 0.6% yesterday, although it lost about 0.7% after hours.
Micron Technology (MU - Free Report) shares lost 3.4% on Wednesday due to the news and fell another 1.9% after hours. The ETF MUU slumped about 7% on the day, with an additional after-hours loss of about 4%.
Note that Micron manufactures and markets high-performance memory and storage technologies, including Dynamic Random Access Memory (DRAM), NAND flash memory, NOR Flash, 3D XPoint memory, and other technologies, which makes it vulnerable to this development.
SK Hynix shares lost about 6.2% on March 26. SK Hynix is a crucial maker of memory chips for AI applications, per Bloomberg, as quoted on Yahoo Finance. Memory stocks have surged in recent months due to strong AI-driven demand and supply shortages. Hence, investors may view the recent news as an opportunity for profit-taking, although medium-term fundamentals remain strong for memory makers.
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Likely Short-Term ETF Winners & Losers Amid Google Breakthrough
Key Takeaways
Google’s new “TurboQuant” technology recently claimed that it can reduce memory usage for large language models by at least sixfold, which in turn could cut the overall cost of training artificial intelligence (AI), per Bloomberg, as quoted on Yahoo Finance.
Since memory is a critical component in AI hardware – especially in systems powered by NVIDIA Corp. NVDA — the announcement initially raised fears of weaker demand for memory. Following the news, shares of memory manufacturers sold off.
Analysts at JPMorgan Chase & Co. noted that while the news may trigger short-term profit-taking, it does not pose a near-term threat to memory demand, as mentioned in the above-said source.
Against this backdrop, below we highlight a few likely winners and losers in the exchange-traded fund (ETF) space from a short-term perspective.
Short-Term Winners
Roundhill Generative AI & Technology ETF (CHAT - Free Report)
The fund added 2.1% on March 25, 2026 and advanced about 1% after hours. And why not? The Alphabet Inc. (GOOGL - Free Report) unit’s recent claim is likely to boost AI payoffs – an area where investors have recently had doubts. Most market watchers have been worried about massive investments made in the AI space lately, which have yet to deliver sufficient returns. Many investors remain skeptical about the payoff timeline.
Roundhill Magnificent Seven ETF (MAGS - Free Report)
According to Morgan Stanley analyst Shawn Kim, the above-said technology enhances returns for hyperscalers by improving cost efficiency and performance. The move could accelerate adoption of AI workloads. With Magnificent Seven companies committed to AI, the ETF may now have room to run. MAGS ETF gained 0.6% yesterday, although it lost about 0.7% after hours.
Short-Term Losers
Direxion Daily MU Bull 2X ETF (MUU - Free Report)
Micron Technology (MU - Free Report) shares lost 3.4% on Wednesday due to the news and fell another 1.9% after hours. The ETF MUU slumped about 7% on the day, with an additional after-hours loss of about 4%.
Note that Micron manufactures and markets high-performance memory and storage technologies, including Dynamic Random Access Memory (DRAM), NAND flash memory, NOR Flash, 3D XPoint memory, and other technologies, which makes it vulnerable to this development.
iShares MSCI South Korea ETF (EWY - Free Report)
SK Hynix shares lost about 6.2% on March 26. SK Hynix is a crucial maker of memory chips for AI applications, per Bloomberg, as quoted on Yahoo Finance. Memory stocks have surged in recent months due to strong AI-driven demand and supply shortages. Hence, investors may view the recent news as an opportunity for profit-taking, although medium-term fundamentals remain strong for memory makers.