- Forget Nvidia: New Memory-Focused ETF Soars 90% As CEO Calls Chips AI's 'Biggest Bottleneck'
May 13, 2026
The explosive growth of artificial intelligence (AI) infrastructure has hit a critical constraint—memory chips—driving a newly launched ETF to staggering gains and pushing top semiconductor stocks to record heights.
The AI Memory Squeeze
Since its April 6th debut, the Roundhill Memory ETF(BATS:DRAM) has surged 90%, rapidly accumulating over $6.25 billion in assets.
The fund’s meteoric rise underscores a stark reality in the tech sector: the global supply of high-bandwidth memory (HBM) cannot keep pace with surging data center demand.
“Investors are waking up to the fact that the biggest bottleneck in the AI buildout is actually memory chips,” Dave Mazza, CEO of Roundhill Investments, told CNBC.
He pointed to an “incredible amount of supply and demand imbalance” that is rapidly transforming the historically cyclical memory sector into a sustained structural boom.
Read Also: In-Depth Analysis: Micron Technology Versus Competitors In Semiconductors & Semiconductor Equipment Industry
Micron's Triple-Digit Surge
This severe bottleneck has directly fueled the massive outperformance of industry leaders like Micron Technology Inc. (NASDAQ:MU), whose shares have more than doubled since late March, gaining 82.26% over the month.
According to Drew Pettit, Citi’s research director of U.S. Equity Strategy, this rapid ascent is fundamentally justified. “It’s because the price momentum has earnings momentum backing,” Pettit explained.
He highlighted that analysts are projecting massive profitability upgrades for these chipmakers. Even after triple-digit percentage moves, Pettit noted that these memory stocks still screen as “reasonably priced” because earnings expectations for the next few years have risen six- to eightfold.
Top holdings of the DRAM ETF include Samsung Electronics, SK hynix, Micron Technology, SanDisk Corp (NASDAQ:SNDK), Western Digital Corp (NASDAQ:WDC) and Seagate Technology Holdings (NASDAQ:STX)
A Lasting Structural Shift
The sheer scale of capital expenditure from hyperscalers is permanently reshaping the semiconductor industry. Micron's data center revenue has skyrocketed from just 15% a few years ago to 65% of its total business today.
Furthermore, major memory producers are abandoning short-term agreements in favor of long-term, multi-year contracts. Because fabricating new memory plants takes three to five years, Mazza expects this lucrative supply constraint to persist.
Rather than a short-term cyclical trend, market experts predict this critical bottleneck could easily extend into 2027 or even 2028, solidifying memory chips as the foundational infrastructure of the ongoing AI revolution.
Story Continues
DRAM Surges 90% Since Listing
DRAM has gained 90% since April 6, 2026, and 58.19% over the last month. Meanwhile, MU has surged 102.93% since the same date.
It closed 3.61% lower on Tuesday at $766.58 apiece, and it was 5.95% higher in premarket on Wednesday. Benzinga’s Edge Stock Rankings indicate that MU maintains a strong price trend in the short, medium, and long terms, with a poor value ranking. Benzinga's Edge Stock Rankings for MU.
Read Also: SOXL Tumbles As Micron, SanDisk Drag Semis Lower; SOXS Spikes On Memory Shockwave
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock
UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.
This article Forget Nvidia: New Memory-Focused ETF Soars 90% As CEO Calls Chips AI's 'Biggest Bottleneck' originally appeared on Benzinga.com
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
View Comments
- AI chip stocks surge again as Nvidia’s Huang joins Trump on visit to China
May 13, 2026
Investing.com -- Shares in semiconductor, optical networking, and data storage companies have surged in premarket trading on Wednesday, driven by tightening global memory chip supply and a boost in sentiment as Nvidia Chief Executive Jensen Huang joined President Donald Trump on his visit to China.
The memory chip rally has been fueled in part by supply concerns after labor negotiations at Samsung Electronics collapsed, raising the prospect of further disruption to an already tight market for chips critical to artificial intelligence infrastructure.
Samsung shares rose 1.8% in Seoul, while SK Hynix surged 7.7%. Micron Technology is up 5.4% in U.S. premarket trading, with storage peers Sandisk up 4.4%, Western Digital gaining 2.8% and Seagate adding 1.9%.
Among broader chip names, Qualcomm has gained of 3.7%, while Intel rose 2.4%, Advanced Micro Devices added 1.8% and Nvidia itself climbed 1.9% despite Huang's presence at the diplomatic summit drawing the most attention.
Optical and photonic component makers, which supply key hardware for AI data center interconnects, also moved sharply higher.
Applied Optoelectronics has gained 6.4%, Coherent rose 6.7%, Lumentum advanced 6.6%, Corning added 3.9% and Marvell Technology climbed 2.4%.
The broad-based advance reflects growing optimism that the Trump-Xi summit could ease trade tensions weighing on the semiconductor supply chain, while supply-side pressures continue to underpin the investment case for companies tied to AI infrastructure buildouts.
Related articles
AI chip stocks surge again as Nvidia’s Huang joins Trump on visit to China
5 reasons why Jefferies thinks Meta’s pullback is a buying opportunity
Morgan Stanley CIO survey: Why AI hype isn’t boosting 2026 IT budgets
View Comments
- Latest News In AI Chips - Vapi Advances Voice AI With $50 Million Series B
May 13, 2026
The AI chip sector has witnessed notable advancements with Vapi's recent $50 million Series B funding round aimed at revolutionizing enterprise voice AI systems. Vapi, recognized for its platform that enhances voice interactions for businesses, is addressing the limitations of traditional phone systems by introducing adaptable voice agents capable of human-like conversations. With enterprise clients like Amazon and Intuit, Vapi's technology aims to elevate customer service experiences at scale. The company's rapid growth in enterprise ARR and significant traction in industries such as financial services and healthcare underscore the increasing pivotal role of voice AI solutions in enhancing customer interactions.
Elsewhere in the market, SJ Semiconductor was trading firmly up 13.2% and ending the day at CN¥155.45, close to the 52-week high. At the same time, Camtek lagged, down 15.8% to finish the session at $174.62. Camtek reported on 12 May a slight year-over-year decline in net income for Q1 2026 but expects over 25% revenue growth in the second half of the year.
Camtek's AI-driven innovations position it for rapid growth in semiconductor packaging. Discover more about Camtek's strategic advancements and market opportunities in the full narrative.
Don't miss our previous Market Insights article, which uncovered the strategic importance of AI and semiconductor development in China's latest five-year plan, highlighting opportunities for swift action.
Best AI Chip Stocks
NVIDIA closed at $220.78 up 0.6%, near its 52-week high. On Monday, Red Hat announced that Zero Latency's AI network, utilizing NVIDIA's GPUs, will enhance real-time processing capabilities through a distributed edge datacenter system. Advanced Micro Devices ended the day at $448.29 down 2.3%, close to the 52-week high. Micron Technology closed at $766.58 down 3.6%.
Make It Happen
Take a closer look at our AI Chip Stocks list of 125 companies, such as Hon. Precision, Taiwan Semiconductor Manufacturing and Advantest, by clicking here. Looking For Alternative Opportunities? Trump has pledged to "unleash" American oil and gas and these 22 US stocks have developments that are poised to benefit.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Story Continues
Sources:
Simply Wall St "Vapi raises $50M Series B as it reaches 1 billion calls, powering the next generation of enterprise voice AI " from Vapi on GlobeNewswire (published 12 May 2026)
Companies discussed in this article include SHSE:688820 NasdaqGS:NVDANasdaqGS:AMDNasdaqGS:MU and NasdaqGM:CAMT.
This article was originally published by Simply Wall St.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
View Comments
- Why Micron Technology (MU) Matters Beyond Memory in the AI Infrastructure Race
May 13, 2026
Micron Technology, Inc. (NASDAQ:MU) is one of the best AI enabler stocks to buy now. The latest AI infrastructure angle came on May 5, when Micron Technology, Inc. (NASDAQ:MU) said it had started shipping its 245TB Micron 6600 ION SSD, which the company described as the world’s highest-capacity commercially available SSD. The drive is built for AI, cloud, enterprise, and hyperscale workloads, including next-generation AI data lakes and cloud-scale file and object storage. Micron said the 245TB 6600 ION E3.L requires 82% fewer racks than HDD-based deployments to achieve equivalent raw storage capacity, helping data centers store and process more data while reducing power and cooling demands. The AI-enabler angle is that AI infrastructure doesn’t only need GPUs and HBM. It also needs dense, efficient storage for the enormous datasets used in training, inference pipelines, analytics, and object storage. Micron said its lab testing showed the 245TB 6600 ION delivered up to 84x better energy efficiency for AI workloads, 8.6x faster AI preprocessing, 3.4x better ingest throughput, and up to 29x lower latency versus HDD-based systems.Why Micron Technology (MU) Matters Beyond Memory in the AI Infrastructure Race
That gives Micron a broader role in the AI supply chain: memory and storage products that help data centers feed, move, and retain the data behind AI workloads. Micron Technology, Inc. (NASDAQ:MU) develops memory and storage products, including DRAM, NAND, NOR, high-bandwidth memory, SSDs, and related solutions for data centers, AI infrastructure, mobile devices, PCs, automotive, industrial, and networking markets. While we acknowledge the potential of MU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. Disclosure: None. Follow Insider Monkey on Google News. While we acknowledge the potential of MU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. Disclosure: None. Follow Insider Monkey on Google News.
View Comments
- Why an Even Bigger Memory-Chip Shortage Is a Good Thing for Micron and Sandisk Stock
May 13, 2026
Micron Technology stock and Sandisk were gaining early Wednesday. Labor unrest at Samsung Electronics could intensify the memory-chip supply crunch. Micron shares were up 6.2% in premarket trading, and Sandisk stock was rising 5.2%.
Continue Reading
- What the Elite Group of CEOs Joining Trump in China Says About the U.S. Economy
May 13, 2026
President Donald Trump has put together an exclusive group of CEOs, representing the best the U.S. has to offer, to join his key summit with China’s Xi Jinping.
Continue Reading
- Tech Stocks Lead Market Rebound as Chip Rally Rolls On. Why the Dow's Missing Out.
May 13, 2026
Tech was on track for a strong session on Wednesday, as investors piled back into chip stocks following a brief pause. Futures tracking the Nasdaq 100 added 0.9% as the likes of Micron, Nvidia, and Qualcomm all rallied.
Continue Reading
- Zacks Value Trader Highlights: Intel, Micron and Caterpillar
May 13, 2026
For Immediate Release
Chicago, IL – May 13, 2026 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2919403/how-do-you-know-when-to-sell-a-winning-stock
How Do You Know When to Sell a Winning Stock?
>
(1:00) - What Rules Should You Follow When Exiting A Long Term Investment? (15:45) - Top Stock Picks To Keep On Your Radar Right Now (40:15) - Episode Roundup: MU, INTC, CAT, ETN Podcast@Zacks.com
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Over the last 10 years, Tracey has featured Intel, Micron, and Caterpillar as value stocks on the Value Investor Podcast. Micron and Caterpillar are “cyclical” stocks which means their earnings move higher, and lower, in cycles.
In the cycles, they can have extremely low price-to-earnings (P/E) ratios and show up in value stock screens.
Intel has been in the doghouse with investors for years, with the stock only breaking out to new all-time highs this year for the first time since the dot-com boom in 2000.
Intel has been the true epitome of a value stock over the years. It traded with low fundamentals like price-to-earnings (P/E) and price-to-sales (P/S) ratios.
But that was then, and this is now. In 2026, all three stocks are busting out to new highs.
When Should a Long-Term Investor Sell a Winning Stock?
Most value investors are buy and hold investors, also known as long-term investors. As famed value investor Warren Buffett has said, the best time to sell a stock is never. Buffett himself has famously owned some of his stocks, like Coca-Cola, for decades.
But when a stock has an extraordinary return over a brief period, most investors start wondering if they should sell.
Here is a checklist for investors to consider:
Every investor should have a plan. Why are you investing? Is the money going towards a goal like retirement, college tuition, a new car, or house down payment? When is that plan’s completion date? Is it a short-term 1-year plan or a 20-year one? Have you reached your goal? Have a strategy. When a stock has extraordinary returns, your strategy may be to cash in 25% or 50% to lock in profits at a certain point in time. There is no reason you must sell all of your shares or hold onto all of them. You can sell just part of your position. If you can’t sleep at night, create a new strategy.
Story Continues
Knowing when to sell a stock is one of the toughest things in investing.
Look at Warren Buffett. Over the last 2 years, he’s been selling a chunk of Berkshire Hathaway’s shares in Apple. Yet, Apple has gone on to hit new highs after he has sold.
Even the greatest investor of all time has left money on the table. No one can time a sale perfectly. Remember, have a plan, and execute a strategy.
Should You Sell These 3 Winning Stocks Right Now?
1. Intel Corp. INTC
Intel is a semiconductor company that was one of the “tech titans” of the 1990s and dot-com boom, but which fell out of favor after the dot-com bust.
But in the last year, shares of Intel have jumped 504.3%, and are one of the top performing S&P 500 stocks in the last month. Intel has added 107.5% in that time.
Intel is no longer cheap. It trades with a forward P/E of 119. But earnings are expected to rise 150% in 2026.
Should investors consider selling shares of Intel after this rally?
2. Micron Technology, Inc. MU
Micron is a technology company that’s in semiconductor memory. It’s always been a cyclical. But this has been a huge rally during this cycle.
Shares of Micron are up 826.3% in the last year, with shares jumping 89% in the last month.
Micron is still cheap on a P/E basis. It has a forward P/E of 12.8. A P/E under 15 usually indicates a stock is a value. How could the P/E be so low with the shares soaring? Earnings are soaring too.
Micron is expected to grow earnings by 605% in 2026 and another 67.7% in 2027.
Should investors consider cashing in their Micron shares after this rally?
3. Caterpillar Inc. CAT
Caterpillar is an old economy company that manufactures mining and construction equipment. Are you surprised to see that it’s a hot big cap stock too?
Shares of Caterpillar are up 184.6% over the last year and have gained 17.2% in just the last month. It’s now at new all-time highs.
Earnings are expected to rise 27% this year and 22.4% next year. Caterpillar is now trading with a forward P/E of 37 as growth and momentum investors rush in.
Many buy and hold investors have been in Caterpillar over the last year.
Should investors consider cashing in their Caterpillar shares after this rally?
What Else Should You Know About When to Sell a Winning Stock?
Tune into this week’s podcast to find out.
[In full disclosure, the Zacks Insider Trader portfolio now owns shares of Caterpillar. It did not own them on the date the podcast was recorded on May 6, 2026.]
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com/performance
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancef or information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Intel Corporation (INTC) : Free Stock Analysis Report
Caterpillar Inc. (CAT) : Free Stock Analysis Report
Micron Technology, Inc. (MU) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
View Comments
- These Stocks Are Today’s Movers: Micron, Nvidia, Alibaba, EchoStar, Karman, Oklo, and More
May 13, 2026
Micron, Nvidia, and Qualcomm rise as investors pile back into chip stocks, while EchoStar surges after the FCC approves a spectrum sale.
Continue Reading
- Update: Market Chatter: Nvidia Chief Executive Jensen Huang Joins Trump China Trip
May 13, 2026
(Updates include details of other CEOs in the second paragraph.) Nvidia (NVDA) Chief Executive Je
PREMIUM
Upgrade to read this MT Newswires article and get so much more.
A Silver or Gold subscription plan is required to access premium news articles.
Upgrade
Already have a subscription? Sign in
