We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What Lies Ahead of DRAM ETF as Memory Crisis May Intensify in 2027?
Read MoreHide Full Article
Key Takeaways
Higher memory costs may pressure margins for major buyers, including Apple and other chip companies.
DRAM offers concentrated exposure to leading memory makers, including Samsung, Micron and SK Hynix.
DISK provides active exposure to memory stocks, with major allocations to Sandisk, SK Hynix and Kioxia.
Speaking at an industry event, Intel CEO Lip-Bu Tan recently said thatmemory had already emerged as a major constraint for the semiconductor industry and warned that the situation could worsen in 2027, as reported by Yahoo Finance. He pointed to limited production capacity and said some businesses have been forced to slow operations because they cannot secure sufficient memory supplies.
Tan also noted that memory prices have surged significantly, rising severalfold as demand continues to outpace available supply. The pricing environment could provide further support to memory manufacturers such as Micron (MU - Free Report) and SK Hynix (SKHY - Free Report) . Both companies’ shares rallied on Sept. 17, 2026.
Investors appear to be weighing the potential benefit of stronger memory pricing for chipmakers against the higher costs faced by companies that rely heavily on memory components.
For memory producers, tight supply and elevated prices could support revenue and profit growth if demand remains strong.
Higher Memory Costs Could Pressure Buyers
The outlook is less favorable for major memory customers. Barclays strategist Venu Krishna cautioned that rising memory costs could become a significant earnings headwind for chip buyers in 2027, per the same Yahoo Finance article.
Recent comments from major memory purchasers suggest that elevated costs are already affecting profit margins. Apple, for example, has linked recent gross-margin pressure to higher memory expenses and expects the cost impact to continue in the near term.
Samsung offers another indication of the tightening market. Although it is itself a major memory producer, the company also purchases memory for its products. According toKrishna,Samsung's pre-booked demand points to a larger supply-demand imbalance in 2027 than in 2026, reinforcing expectations for continued strength in memory pricing.
The $24-billion ETF looks to offer exposure to a basket of global memory chip companies. DRAM is the first-ever memory stock ETF. The fund charges 65 bps in fees. Samsung Electronics Co (25%), Micron Technology (25%) and SK Hynix (24%) hold the top three spots in the fund.
The fund, which made a debut in early April 2026, is up 108% since inception. The fund is trading at about 30% discount to its high price of $81.34.
Apart from DRAM, there is another ETF to track the memory market. This ETF is active and does not track a benchmark. The fund is heavy on Sandisk, SK Hynix and Kioxia, each taking 15% to 16% of the fund. United States (29%), South Korea (26%) and Japan (15%) are the key geographies of the fund. The fund has a small asset base of $85.7 million while it charges 75 bps in fees.
View the Zacks #1 Rank List
Image: Bigstock
What Lies Ahead of DRAM ETF as Memory Crisis May Intensify in 2027?
Key Takeaways
Speaking at an industry event, Intel CEO Lip-Bu Tan recently said thatmemory had already emerged as a major constraint for the semiconductor industry and warned that the situation could worsen in 2027, as reported by Yahoo Finance. He pointed to limited production capacity and said some businesses have been forced to slow operations because they cannot secure sufficient memory supplies.
Tan also noted that memory prices have surged significantly, rising severalfold as demand continues to outpace available supply. The pricing environment could provide further support to memory manufacturers such as Micron (MU - Free Report) and SK Hynix (SKHY - Free Report) . Both companies’ shares rallied on Sept. 17, 2026.
Investors appear to be weighing the potential benefit of stronger memory pricing for chipmakers against the higher costs faced by companies that rely heavily on memory components.
For memory producers, tight supply and elevated prices could support revenue and profit growth if demand remains strong.
Higher Memory Costs Could Pressure Buyers
The outlook is less favorable for major memory customers. Barclays strategist Venu Krishna cautioned that rising memory costs could become a significant earnings headwind for chip buyers in 2027, per the same Yahoo Finance article.
Recent comments from major memory purchasers suggest that elevated costs are already affecting profit margins. Apple, for example, has linked recent gross-margin pressure to higher memory expenses and expects the cost impact to continue in the near term.
Samsung offers another indication of the tightening market. Although it is itself a major memory producer, the company also purchases memory for its products. According toKrishna,Samsung's pre-booked demand points to a larger supply-demand imbalance in 2027 than in 2026, reinforcing expectations for continued strength in memory pricing.
ETFs to Benefit
Roundhill Memory ETF (DRAM - Free Report)
The $24-billion ETF looks to offer exposure to a basket of global memory chip companies. DRAM is the first-ever memory stock ETF. The fund charges 65 bps in fees. Samsung Electronics Co (25%), Micron Technology (25%) and SK Hynix (24%) hold the top three spots in the fund.
The fund, which made a debut in early April 2026, is up 108% since inception. The fund is trading at about 30% discount to its high price of $81.34.
Tema Memory ETF (DISK - Free Report)
Apart from DRAM, there is another ETF to track the memory market. This ETF is active and does not track a benchmark. The fund is heavy on Sandisk, SK Hynix and Kioxia, each taking 15% to 16% of the fund. United States (29%), South Korea (26%) and Japan (15%) are the key geographies of the fund. The fund has a small asset base of $85.7 million while it charges 75 bps in fees.