Roundhill's Memory ETF DRAM Surges, Raising Over $5 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy MU?
Source: CNBC
- Fundraising Achievement: Roundhill's Memory ETF DRAM has raised over $5 billion since its launch on April 2, including $1.1 billion on Thursday alone, demonstrating strong market demand and investor confidence in memory chips.
- Market Performance: DRAM has seen daily inflows for 23 consecutive trading sessions, with a 70% increase in ETF price, indicating optimistic expectations among investors, particularly as major holdings like Micron and Sandisk reach new highs.
- Active Options Trading: On Thursday, DRAM's options trading volume exceeded 90,000 contracts, with nearly twice as many calls bought compared to puts, reflecting strong investor interest and market activity surrounding AI-related investment opportunities.
- International Investment Opportunity: The DRAM ETF includes star chip companies like SK Hynix and Samsung Electronics, which are largely inaccessible to U.S. investors, making DRAM a unique investment choice that meets the demand for high-quality memory chips.
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Analyst Views on MU
Wall Street analysts forecast MU stock price to fall
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 766.580
Low
235.00
Averages
336.12
High
500.00
Current: 766.580
Low
235.00
Averages
336.12
High
500.00
About MU
Micron Technology, Inc. provides memory and storage solutions. The Company delivers a portfolio of high-performance dynamic random-access memory (DRAM), NAND, and NOR memory and storage products through its Micron and Crucial brands. The Company's products enable advancing in artificial intelligence (AI) and compute-intensive applications. Its segments include Cloud Memory Business Unit (CMBU), Core Data Center Business Unit (CDBU), Mobile and Client Business Unit (MCBU) and Automotive and Embedded Business Unit (AEBU). CMBU is focused on memory solutions for large hyperscale cloud customers, and high bandwidth memory (HBM) for all data center customers. CDBU is focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers. MCBU is focused on memory and storage solutions for mobile and client segments. AEBU is focused on memory and storage solutions for the automotive, industrial, and consumer segments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Revenue Growth: The company's revenue is projected to nearly triple from $8 billion in Q2 2025 to $23.8 billion in 2026, highlighting robust demand in the high-bandwidth memory market, particularly driven by artificial intelligence.
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- Valuation Metrics: Micron's trailing P/E ratio has risen to about 35, significantly above the five-year average of 28.5; however, its forward P/E stands at just 7.6, indicating it may still be undervalued.
- Revenue Growth: The company's revenue is projected to nearly triple from $8 billion in Q2 2025 to $23.8 billion in 2026, highlighting robust demand in the high-bandwidth memory market, particularly driven by artificial intelligence.
- Supply-Demand Dynamics: Micron's entire supply for 2026 is sold out, with expectations that this trend will continue, underscoring its critical role in AI infrastructure development and further solidifying its market position.
See More
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- Semiconductor and AI Stock Rebound: After a day of selling, stocks like Micron and Corning are rebounding this morning, indicating ongoing market interest in semiconductor and AI stocks, despite S&P futures declining due to hotter-than-expected April wholesale inflation data.
- Nvidia Price Target Increase: Bank of America raised Nvidia's price target from $300 to $320, reflecting optimism ahead of its upcoming earnings report, while CEO Jensen Huang's attendance at the summit with Trump in China may further boost the stock.
- Qnity Electronics Strong Performance: Following a strong earnings report, Qnity Electronics saw price target increases from Deutsche Bank and BMO Capital to $180 and $200 respectively, showcasing market confidence in AI stocks, particularly amidst a broader market downturn.
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See More
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- Price Target Increase: Bank of America raised Micron Technology's stock price target from $500 to $950 while maintaining a Buy rating, reflecting confidence in the sustained growth of memory demand tied to AI servers and data centers.
- Supply-Demand Imbalance: Analysts indicate that memory manufacturers are facing tighter production conditions due to the lengthy and costly process of building new capacity, making this supply-demand imbalance a crucial part of the bullish narrative.
- High-Bandwidth Memory Advantage: Micron has emerged as a significant winner in the high-bandwidth memory market, particularly in advanced AI chips, further solidifying its market position amid rising demand.
- Investor Focus: As global AI spending accelerates, investors will be keen to see if Micron can maintain pricing power and continue delivering strong earnings growth, ensuring its competitiveness in the rapidly evolving market.
See More
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- Nvidia's Positive Outlook: Oppenheimer reiterates Nvidia as an outperform, projecting CY26 free cash flow to approach $200 billion, and if half is allocated for dividends, the yield could reach nearly 2.5%, which would bolster investor confidence and drive stock price appreciation.
- Apple's Strong Ecosystem: Daiwa raises Apple's price target from $310 to $325, emphasizing its vast ecosystem as a core strength, while acknowledging potential memory management challenges in 2H CY26, the long-term outlook remains favorable for this core holding.
- Positive Outlook for Housing Platform: UBS upgrades KE Holdings to buy from neutral, citing significant upside due to its agency business in tier 1 cities, particularly as the market recovery is led by the secondary market, positioning the company for strong performance.
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See More
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- Alibaba Profit Plunge: Alibaba's U.S.-listed shares fell 3% after reporting an 84% drop in Q1 profit, indicating severe short-term profitability challenges despite heavy investments in AI, which may hinder its future market performance.
- Nextpower Revenue Guidance Upgraded: Nextpower raised its full-year revenue guidance to a range of $3.8 billion to $4.1 billion, up from $3.6 billion to $3.8 billion, resulting in a 14% stock surge that reflects the company's strong growth potential in the energy sector.
- Resideo Earnings Guidance Miss: Resideo's shares plunged nearly 9% after guiding for current-quarter adjusted earnings between 71 to 75 cents per share, below the analyst expectation of 84 cents, despite beating first-quarter estimates, indicating potential investor concerns about future performance.
See More
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- Oil Price Decline: Oil prices fell after a three-day rally, providing some relief to the markets; however, investors remain wary that ongoing conflicts could keep energy prices elevated, adding inflationary pressures that may complicate the Federal Reserve's policy outlook.
- Fed Policy Expectations: With Kevin Warsh confirmed to the Federal Reserve board, markets are anxious about a potentially more hawkish stance, as the probability of a 25-basis-point hike in December has risen to 28%, reflecting uncertainty regarding future monetary policy.
- Chip Stock Stabilization: Following a selloff in the previous session, chip stocks showed signs of stabilization, with Micron Technology (MU.O) rising 6.2% and Western Digital (WDC.O) gaining 3.1%, indicating a gradual recovery in market confidence towards the semiconductor sector.
See More
