Investing Simplified - Professor G on $DRAM (Nov 5, 2026)
The speaker is holding DRAM and adds whenever drops are big enough, calling it his most daring AI bet, held small because risks are very high; he cites ~75% concentration in Micron, Samsung and SK Hynix with supply nearly sold out through 2029, against price growth slowing from 80% and 40% to an expected 10-15% in Q4, worrying investors the cycle has peaked.
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Next up is actually an exchange-traded fund (ETF), the Roundhill Memory ETF DRAM, which is trading today at around $54, up about 95% since its launch in April, but down 9% last month and 33% from its June high.
This fund invests in memory chips that power artificial intelligence, with a concentration of approximately 75% in companies such as Micron, Samsung, and SK Hynix. Now, if you want to talk about thriving businesses, these are the companies that are making it happen.
Micron reported $54.2 billion in quarterly revenue with a gross profit margin of 87%. SK Hynix posted record profits and says its memory supply is virtually sold out through 2029.
Samsung also posted record operating profits of around $80 billion. So why is this fund declining now? Memory prices are still rising, but the pace is slowing down. DRAM prices rose by about 80% in the second quarter, 40% in the third, and are expected to rise by only 10 to 15% in the fourth quarter.
Investors are concerned that the memory cycle may have peaked despite record demand and extreme volatility. Korean chip stocks have seen huge swings this month, while Micron analysts still expect a rise of around 45 to 65%.
So, for this fund, I'm holding onto it, but I also buy whenever we see drops that are big enough. This is my most daring investment in artificial intelligence, and it is a relatively small part of my entire investment portfolio because the risks are very high, and because I am practicing what I preach when I tell you to build your portfolios this way.
But I believe in this, and I will continue to add when I see illogical drops.
What this channel has said about $DRAM
Investing Simplified - Professor G has 2 calls on this stock; only the adjacent ones are shown.