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ETFs to Watch as Memory-Chip Scarcity Could Extend Through 2027
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Key Takeaways
AI-driven HBM demand could keep memory supplies tight through 2027.
Memory makers could gain from higher prices, while electronics firms face costs.
VLUE, SHOC, DRAM and EWY offer ETF exposure to the AI-driven memory boom.
The artificial intelligence (AI) boom is creating a bottleneck for the semiconductor industry. As hyperscalers continue spending billions of dollars on AI data centers, the demand for high-bandwidth memory (HBM) used alongside advanced AI processors has surged, diverting production away from smartphones, PCs and other electronics.
In January, Synopsys CEO Sassine Ghazi warned that the chip crunch could persist through 2026 and 2027, as memory manufacturers need at least two years to bring new capacity online, as quoted on CNBC.
The supply constraint is particularly important because companies such as Samsung, SK Hynix (SKHY - Free Report) and Micron Technology (MU - Free Report) are directing a growing share of available memory capacity toward AI infrastructure.
SK Hynixsaid on Aug. 27, 2026, that it expects the memory shortage to persist through 2030, while announcing a $4-billion Indiana facility for next-generation HBM4E packaging, per BENZINGA, as quoted on Yahoo Finance.
Gainers & Losers From This Crisis
The immediate beneficiaries are memory manufacturers. With supply tight and AI customers willing to pay for high-performance HBM, pricing power has shifted toward producers. This could support earnings and margins for companies such as Micron Technology, while sustained AI spending provides visibility for the broader semiconductor supply chain.
For investors, however, the opportunity extends beyond memory manufacturers. Producing increasingly sophisticated AI chips requires advanced semiconductor manufacturing and equipment, meaning sustained AI infrastructure investment can benefit chip designers, foundries and equipment makers as well.
At the same time, the shortage creates challenges for consumer electronics companies. Higher memory costs can raise the bill of materials for smartphones, PCs and laptops, potentially forcing manufacturers to increase prices.
The memory shortage could extend the current semiconductor cycle rather than allowing the industry to quickly return to its traditional boom-and-bust pattern. If AI data center spending remains strong, HBM demand could keep memory producers operating in a favorable pricing environment, while chip equipment and manufacturing companies benefit from efforts to expand capacity.
But the risk is that semiconductor valuations may already reflect a large portion of the AI growth story. A slowdown in AI infrastructure spending, weaker consumer-electronics demand or a faster-than-expected expansion in memory capacity could ease pricing pressure.
ETFs to Watch
Against this backdrop, investors can play MU, SKHY and Samsung-heavy ETFs that should benefit from the above-mentioned trends.
iShares MSCI USA Value Factor ETF (VLUE - Free Report) tracks the performance of the MSCI USA Enhanced Value Index that measures the performance of U.S. large- and mid-capitalization stocks with value characteristics and relatively lower valuations, before fees and expenses.
VLUE holds a massive weightage of 20.45% of MU in its portfolio. It has assets under management worth $9.72 billion and an expense ratio of 0.15%. The fund trades at an average daily volume of 1.24 million shares.
Strive U.S. Semiconductor ETF (SHOC - Free Report) is a focused semiconductor ETF that gives investors exposure to U.S.-listed semiconductor companies, particularly firms benefiting from AI, data-center expansion and rising chip demand. The fund holds 13.57% of MU, enjoying the second spot in its portfolio.
SHOC has assets under management worth $234.2 million and an expense ratio of 0.40%. The fund trades at an average daily volume of 19,049 shares.
Roundhill Memory ETF (DRAM - Free Report) is the basic memory technology behind modern computing, while HBM is its high-speed, AI-focused evolution. Samsungholds a massive weightage of 25.25%, along with MU having 25.10%, and SK Hynix holds a 21.80% weightage.
DRAM has assets under management worth nearly $26 billion and an expense ratio of 0.65%. The fund trades at an average daily volume of 60.22 million shares.
iShares MSCI South Korea ETF (EWY - Free Report) is one of the main U.S.-listed ETFs for gaining broad exposure to South Korean equities with a major memory-chip component.
Samsungholds a massive weightage of 21.96%, while SK Hynix holds 20.86% weightage. EWY has assets under management worth $27.98 billion and an expense ratio of 0.59%. The fund trades at an average daily volume of 21.71 million shares.
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ETFs to Watch as Memory-Chip Scarcity Could Extend Through 2027
Key Takeaways
The artificial intelligence (AI) boom is creating a bottleneck for the semiconductor industry. As hyperscalers continue spending billions of dollars on AI data centers, the demand for high-bandwidth memory (HBM) used alongside advanced AI processors has surged, diverting production away from smartphones, PCs and other electronics.
In January, Synopsys CEO Sassine Ghazi warned that the chip crunch could persist through 2026 and 2027, as memory manufacturers need at least two years to bring new capacity online, as quoted on CNBC.
The supply constraint is particularly important because companies such as Samsung, SK Hynix (SKHY - Free Report) and Micron Technology (MU - Free Report) are directing a growing share of available memory capacity toward AI infrastructure.
SK Hynixsaid on Aug. 27, 2026, that it expects the memory shortage to persist through 2030, while announcing a $4-billion Indiana facility for next-generation HBM4E packaging, per BENZINGA, as quoted on Yahoo Finance.
Gainers & Losers From This Crisis
The immediate beneficiaries are memory manufacturers. With supply tight and AI customers willing to pay for high-performance HBM, pricing power has shifted toward producers. This could support earnings and margins for companies such as Micron Technology, while sustained AI spending provides visibility for the broader semiconductor supply chain.
For investors, however, the opportunity extends beyond memory manufacturers. Producing increasingly sophisticated AI chips requires advanced semiconductor manufacturing and equipment, meaning sustained AI infrastructure investment can benefit chip designers, foundries and equipment makers as well.
At the same time, the shortage creates challenges for consumer electronics companies. Higher memory costs can raise the bill of materials for smartphones, PCs and laptops, potentially forcing manufacturers to increase prices.
The memory shortage could extend the current semiconductor cycle rather than allowing the industry to quickly return to its traditional boom-and-bust pattern. If AI data center spending remains strong, HBM demand could keep memory producers operating in a favorable pricing environment, while chip equipment and manufacturing companies benefit from efforts to expand capacity.
But the risk is that semiconductor valuations may already reflect a large portion of the AI growth story. A slowdown in AI infrastructure spending, weaker consumer-electronics demand or a faster-than-expected expansion in memory capacity could ease pricing pressure.
ETFs to Watch
Against this backdrop, investors can play MU, SKHY and Samsung-heavy ETFs that should benefit from the above-mentioned trends.
iShares MSCI USA Value Factor ETF (VLUE - Free Report) tracks the performance of the MSCI USA Enhanced Value Index that measures the performance of U.S. large- and mid-capitalization stocks with value characteristics and relatively lower valuations, before fees and expenses.
VLUE holds a massive weightage of 20.45% of MU in its portfolio. It has assets under management worth $9.72 billion and an expense ratio of 0.15%. The fund trades at an average daily volume of 1.24 million shares.
Strive U.S. Semiconductor ETF (SHOC - Free Report) is a focused semiconductor ETF that gives investors exposure to U.S.-listed semiconductor companies, particularly firms benefiting from AI, data-center expansion and rising chip demand. The fund holds 13.57% of MU, enjoying the second spot in its portfolio.
SHOC has assets under management worth $234.2 million and an expense ratio of 0.40%. The fund trades at an average daily volume of 19,049 shares.
Roundhill Memory ETF (DRAM - Free Report) is the basic memory technology behind modern computing, while HBM is its high-speed, AI-focused evolution. Samsungholds a massive weightage of 25.25%, along with MU having 25.10%, and SK Hynix holds a 21.80% weightage.
DRAM has assets under management worth nearly $26 billion and an expense ratio of 0.65%. The fund trades at an average daily volume of 60.22 million shares.
iShares MSCI South Korea ETF (EWY - Free Report) is one of the main U.S.-listed ETFs for gaining broad exposure to South Korean equities with a major memory-chip component.
Samsungholds a massive weightage of 21.96%, while SK Hynix holds 20.86% weightage. EWY has assets under management worth $27.98 billion and an expense ratio of 0.59%. The fund trades at an average daily volume of 21.71 million shares.