--- title: Memory Becomes a “Show Me” Story description: The selloff in Roundhill Memory (DRAM) has been acute. DRAM closed down 18% on 11/5, the worst decline in the fund’s early history, accelerating losses after the U.S. midterm elections. image: https://blog.roundhillinvestments.com/hubfs/Show%20ME.png --- [Skip to content](https://blog.roundhillinvestments.com/memory-a-show-me-story#main-content) - [Home](https://www.roundhillinvestments.com/) - [Home](https://www.roundhillinvestments.com/) [![Roundhill Investments Logo](https://www.roundhillinvestments.com/assets/img/roundhill-round-logo-black.svg "Roundhill Investments Logo")](https://www.roundhillinvestments.com/) Invest ## Choose a Fund METV BETZ CHAT MAGS NERD WEED YBTC MAGX QDTE XDTE OZEM YETH RDTE DRAG XPAY UX NVW TSW AAPW COIW PLTW WEEK ← Back ## Choose a Brokerage [Robinhood](https://robinhood.com/stocks/) [Fidelity](https://screener.fidelity.com/ftgw/etf/goto/snapshot/snapshot.jhtml?symbols=) [E-Trade](https://www.etrade.wallst.com/v1/stocks/snapshot/snapshot.asp?ChallengeUrl=https://idp.etrade.com/idp/SSO.saml2&reinitiate-handshake=0&prospectnavyear=2011&AuthnContext=prospect&env=PRD&symbol=) [Webull](https://www.webull.com/quote/nysearca-) [SoFi](https://www.sofi.com/wealth/app/stock/) [Public.com](https://public.com/stocks/) [Interactive Brokers](https://www.interactivebrokers.com/en/?f=30534&q=) [Vanguard](https://personal.vanguard.com/us/funds/stocks/snapshot?Ticker=) [Charles Schwab](https://www.schwab.com/public/schwab/investing/investment_help/investment_research/etf_research/etfs.html?path=/Prospect/Research/etfs/summary.asp?symbol=) For all other registered brokerages, contact them directly to invest. Close the "Invest" pop-up Open the mobile navigation # Memory Becomes a “Show Me” Story [![Image of Drew Pettit](https://blog.roundhillinvestments.com/hs-fs/hubfs/1766136380003.jpg?width=80&height=80&name=1766136380003.jpg)](https://blog.roundhillinvestments.com/author/drew-pettit) Author [Drew Pettit](https://blog.roundhillinvestments.com/author/drew-pettit) November 6, 2026 | Read Time: 7min [![Image of Thomas DiFazio](https://blog.roundhillinvestments.com/hs-fs/hubfs/TAD%20Headshot.jpg?width=80&height=80&name=TAD%20Headshot.jpg)](https://blog.roundhillinvestments.com/author/thomas-difazio) Author [Thomas DiFazio](https://blog.roundhillinvestments.com/author/thomas-difazio) November 6, 2026 | Read Time: 7min Share: - [Twitter](https://twitter.com/intent/tweet?original_referer=https://blog.roundhillinvestments.com/memory-a-show-me-story&utm_medium=social&utm_source=twitter&url=https://blog.roundhillinvestments.com/memory-a-show-me-story&utm_medium=social&utm_source=twitter&source=tweetbutton&text=Memory+Becomes+a+%26ldquo%3BShow+Me%26rdquo%3B+Story) - [LinkedIn](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fblog.roundhillinvestments.com%2Fmemory-a-show-me-story&utm_medium=social&utm_source=linkedin) ## What’s Happening Today The selloff in Roundhill Memory (DRAM) has been acute. DRAM closed down 18% on 11/5, the worst decline in the fund’s early history, accelerating losses after the U.S. midterm elections. Initial losses seemed tied to fears that shifting state and local politics, specifically in Ohio and Texas, could slow data center buildouts and reduce the projected demand for memory chips. The 11/5 selling accelerated alongside broader market pressure. Since its early April launch, DRAM has worked through various stages (highlighted below). This latest stage has been defined by longer-term fundamental concerns. But breaking below major technical support around $45 could signal a bigger shift, as more investors get flushed out of the trade. Wall Street trading desks are pointing to large hedge funds cutting risk, forcing managers to unwind their portfolios, and rushing to reposition in a less liquid market. Vanda Research stated that 11/5/26 was the largest day of retail selling since the COVID-19 crash. In short, forced institutional selling and a retail buyer’s strike are hitting Memory hard. ![](https://blog.roundhillinvestments.com/hs-fs/hubfs/undefined-Nov-06-2026-02-44-53-4396-PM.png?width=2048&height=1152&name=undefined-Nov-06-2026-02-44-53-4396-PM.png) *The performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be lower or higher than the performance data quoted. The investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than their original cost. Returns less than one year are not annualized. For the most recent month-end performance, please call (855) 561-5728. For more information, including current holdings and standardized performance:*[*https://www.roundhillinvestments.com/etf/dram/*](https://www.roundhillinvestments.com/etf/dram/) ## Zooming Out Since DRAM has a short history, we take a longer look at the market cap weighted performance of the global Memory & Storage industry. The group is roughly 50% below its late-June record high. The five-day return (down 15%) is near its worst since 2020, and the group trades 23% below its 50-day average, near five-year lows. Historically, one could view these as oversold readings, and a sign the selling may be stretched in the short-term. ## ![](https://blog.roundhillinvestments.com/hs-fs/hubfs/undefined-Nov-06-2026-02-44-52-8389-PM.png?width=2048&height=1152&name=undefined-Nov-06-2026-02-44-52-8389-PM.png) ## Oversold, Not an All-Clear But oversold isn’t an all-clear, even if we see a bounce off the lows. Investors have shifted focus from near-term growth to long-run demand. They fear slower data center growth could leave no place to put the chips Memory companies have sold out through 2028 and beyond. That suggests an industry once bought for its growth may still be highly cyclical and prone to booms and busts. Valuation multiples for the group have fallen significantly to reflect that risk, especially price-to-earnings (P/E). ![](https://blog.roundhillinvestments.com/hs-fs/hubfs/undefined-Nov-06-2026-02-44-51-5983-PM.png?width=2048&height=1152&name=undefined-Nov-06-2026-02-44-51-5983-PM.png) ## A Painful, but Maybe Rational Repricing The initial election losses had specific triggers. Newly elected governors in Texas, Ohio, and Georgia campaigned on moratoriums and tougher data center regulations, and voters backed restrictions in nearly all of the roughly 40 data center ballot measures nationwide. The stakes for Memory are concentrated: Texas is the second largest data center market in the world, and Ohio hosts some of the largest planned AI campuses in the country. ![](https://blog.roundhillinvestments.com/hs-fs/hubfs/undefined-Nov-06-2026-02-44-54-0983-PM.png?width=2048&height=1152&name=undefined-Nov-06-2026-02-44-54-0983-PM.png) Now political bark is usually worse than its bite. On closer inspection, policy ideas look less scary than the headlines and a moratorium pledge is not law. Restrictions require legislation, and projects already permitted are largely unaffected. The practical read is slower approvals and higher friction on new projects instead of cancellations within the existing pipelines. Computing power remains in short supply globally, meaning memory chip demand is global as well. So stagnanting data center pipelines in the U.S. could push sales to other regions. Still, the market had to respond to a growing risk. That’s rational. The degree to which it repriced that risk correctly in these large moves is to be determined. ## A “Show Me” Story DRAM was once a growth and momentum trade. Now fundamentals are being challenged as the group looks technically oversold. Oversold conditions can lead to sharp bounces, but durable bottoms are built on improving fundamentals. This is what we mean by a “show me” story. For most of this year, Memory stocks were given credit for demand that sat years in the future. Now, investors want reassurance that demand is durable. That puts the burden of proof on companies to convince investors with strong near-term execution and resilient outlooks. For now, the bear case seems in full force. Softer guidance data storage companies, Chinese competitors advancing on server chips, and fears around slowing data center construction have all arisen. Each poses a risk to forecasts, even though they haven’t impacted fundamentals yet. Pricing is still rising, capacity remains committed under long-term agreements, and demand signals from the largest AI buyers have not deteriorated. We feel the fears of a failed AI buildout are overblown because AI adoption and implementation remains in its early innings. ![](https://blog.roundhillinvestments.com/hs-fs/hubfs/undefined-Nov-06-2026-02-44-52-2022-PM.png?width=2048&height=1152&name=undefined-Nov-06-2026-02-44-52-2022-PM.png) But we respect the price action, even if we believe it’s gone too far too fast. We believe the Memory “show me” story needs confirmation that secular trends are still in place. Strong reports and commentary from Nvidia (NVDA) mid-November and Micron (MU) in mid-December will carry a lot of weight. Anthropic’s expected IPO hitting markets in a timely fashion at a significant valuation will be another major clearing event. Those catalysts should provide the market with more conviction in the AI buildout, which feeds through to memory chip demand and pricing. Until that positive evidence builds, we would be tactically rebalancing DRAM exposure. Treat strength as suspect and weakness as an opportunity as we believe volatility likely continues. **Glossary** **Forward P/E**: price-to-earnings ratio using consensus estimates for next 12-month earnings **Forward P/S**: price-to-sales ratio using consensus estimates for next 12-month sales **OHLC**: Open-High-Low-Close Prices **Technical Support**: A price level that an asset doesn't fall below for a period of time. An asset's support level is created by buyers entering the market whenever the asset dips to a lower price. **50-Day Moving Average**: A simple moving average is constructed by taking a mean average of a time series (50-day) over a given period of time. Moving average often provides a better indicator of trends.   --- **Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. For a prospectus or summary prospectus, if available, with this and other information about the Fund, please call 1-855-561-5728 or visit our website at www.roundhillinvestments.com/etf/dram/. Read the prospectus or summary prospectus carefully before investing.** **Memory Companies Risk**. The Fund invests in Memory Companies, which may have limited product lines, markets, financial resources or personnel and are subject to the risks of changes in business cycles, world economic growth, technological progress and government regulation. These companies are also heavily dependent on intellectual property rights, and challenges to or misappropriation of such rights could have a material adverse effect on such companies. Securities of Memory Companies tend to be more volatile than securities of companies that rely less heavily on technology. Memory Companies typically engage in significant amounts of spending on research and development, and rapid changes to the field could have a material adverse effect on a company’s operating results. Additionally, the development, manufacturing, and commercialization of semiconductor memory technologies, including HBM, DRAM and NAND, as well as related subsystems, equipment, materials, and services, are complex and evolving, and may face unforeseen technical challenges (including yield and integration issues), supply chain disruptions, intense competition and pricing volatility, regulatory developments (including export controls), and market acceptance uncertainties. As a result, investments in Memory Companies may be subject to higher levels of risk and volatility. **Semiconductor Companies Risk**. The Fund invests in companies primarily involved in the design, distribution, manufacture and sale of semiconductors. Semiconductor companies are significantly affected by rapid obsolescence, intense competition and global demand. The Fund is also subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes. The prices of the securities of semiconductor companies may fluctuate widely in response to such events. **Line of Business Risk**. Certain companies included in the Fund’s portfolio will be engaged in other lines of business unrelated to the development of memory products, and these lines of business could adversely affect their operating results. The operating results of these companies may fluctuate as a result of these additional risks and events in the other lines of business. Despite a company’s possible success in activities linked to its development of memory products, there can be no assurance that the other lines of business in which these companies are engaged will not have an adverse effect on a company’s business or financial condition. **Active Management Risk**. The Fund is actively-managed and its performance reflects investment decisions that the Adviser and/or Sub-Adviser makes for the Fund. Such judgments about the Fund’s investments may prove to be incorrect. If the investments selected and the strategies employed by the Fund fail to produce the intended results, the Fund could underperform as compared to other funds with similar investment objectives and/or strategies, or could have negative returns. **Concentration Risk**. The Fund is concentrated in the industry or group of industries comprising the information technology sector. The Fund may be susceptible to an increased risk of loss, including losses due to adverse events that affect the Fund’s investments more than the market as a whole, to the extent that the Fund’s investments are concentrated in the securities and/or other assets of a particular issuer or issuers, country, group of countries, region, market, industry, group of industries, sector, market segment or asset class. **Emerging Markets Risk**. The Fund’s investments in emerging markets may be subject to a greater risk of loss than investments in more developed markets. Emerging markets may be more likely to experience inflation, political turmoil and rapid changes in economic conditions than more developed markets. Emerging markets often have less uniformity in accounting and reporting requirements, unreliable securities valuation and greater risk associated with custody of securities. **South Korea Risk**. The Fund invests significantly in the securities of South Korean issuers. The Fund is subject to certain risks specifically associated with investments in the securities of South Korean issuers. Substantial political tensions exist between North Korea and South Korea. Escalated tensions involving the two nations and the outbreak of hostilities between the two nations, or even the threat of an outbreak of hostilities, could have a severe adverse effect on the South Korean economy. In addition, South Korea’s economic growth potential has recently been on a decline because of a rapidly aging population and structural problems, among other factors. The South Korean economy is heavily reliant on trading exports, especially to other Asian countries and the U.S., and disruptions or decreases in trade activity could lead to further declines. The South Korean economy’s dependence on the economies of Asia and the U.S. means that a reduction in spending by these economies on South Korean products and services or negative changes in any of these economies may cause an adverse impact on the South Korean economy and therefore, on the Fund’s investments. In addition, South Korea is located in a part of the world that has historically been prone to natural disasters such as earthquakes, hurricanes or tsunamis, and is economically sensitive to environmental events. Any such event may adversely impact South Korea’s economy or business operations of companies in South Korea. **Depository Receipts Risk**. Depositary receipts may be less liquid than the underlying shares in their primary trading market. Any distributions paid to the holders of depositary receipts are usually subject to a fee charged by the depositary. Holders of depositary receipts may have limited voting rights, and investment restrictions in certain countries may adversely impact the value of depositary receipts because such restrictions may limit the ability to convert the equity shares into depositary receipts and vice versa. Such restrictions may cause the equity shares of the underlying issuer to trade at a discount or premium to the market price of the depositary receipts. **Preferred Securities Risk**. The Fund may invest significantly in depositary receipts whose underlying securities are non-voting preferred securities. Preferred securities combine some of the characteristics of both common stocks and bonds. Preferred securities are typically subordinated to bonds and other debt securities in a company’s capital structure in terms of priority to corporate income, subjecting them to greater credit risk than those debt securities. Generally, holders of preferred securities have no voting rights with respect to the issuing company unless preferred dividends have been in arrears for a specified number of periods, at which time the preferred security holders may obtain limited rights. In certain circumstances, an issuer of preferred securities may defer payment on the securities and, in some cases, redeem the securities prior to a specified date. Preferred securities may also be substantially less liquid than other securities, including common stock. **New Fund Risk**. The Fund is a recently organized investment company with a limited operating history. As a result, prospective investors have a limited track record or history on which to base their investment decision. **Non-Diversification Risk**. As a “non-diversified” fund, the Fund may hold a smaller number of portfolio securities than many other funds. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers. The value of the Fund Shares may be more volatile than the values of shares of more diversified funds. **Swap Agreements Risk**. The Fund may utilize swap agreements to derive its exposure to Memory Companies. Swap agreements may involve greater risks than direct investment in securities as they may be leveraged and are subject to credit risk, counterparty risk and valuation risk. A swap agreement could result in losses if the underlying reference or asset does not perform as anticipated. In addition, many swaps trade over-the-counter and may be considered illiquid. It may not be possible for the Fund to liquidate a swap position at an advantageous time or price, which may result in significant losses. Roundhill Financial Inc. serves as the investment advisor. The Funds are distributed by Foreside Fund Services, LLC which is not affiliated with Roundhill Financial Inc., U.S. Bank, or any of their affiliates. ### Join the list of today’s futurists Get investing news, insights, and more every week. **About** Roundhill Investments is an SEC-registered investment advisor focused on offering innovative ETFs. [646.661.5441](tel:646.661.5441) **Company** [About](https://www.roundhillinvestments.com/about-us) [Press Releases](https://www.prnewswire.com/news/roundhill-investments/) [Research](https://blog.roundhillinvestments.com/) [Contact Us](https://www.roundhillinvestments.com/contact-us) [Our ETFs](https://www.roundhillinvestments.com/etf/) **Stay Updated** Sign up to receive fund launch notifications, updates, and research. *Carefully consider the investment objectives, risks, charges and expenses of Roundhill ETFs before investing. This and other information about each fund is contained in the Prospectus. 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