The Roundhill Memory ETF (CBOE: DRAM) has wavered over the past few weeks as top companies in the memory industry have traded sideways. It closed last week at $61.91, staying within the narrow range it has held since August. This wavering has coincided with substantial outflows, which have jumped to $2.1 billion over the past month.
Micron Earnings Will be a Key Catalyst
The biggest catalyst for the DRAM ETF will be the upcoming Micron earnings, which will provide more color about the industry. These earnings are important because it is the third-biggest player in the HBM industry after SK Hynix and Samsung Electronics. It is also the biggest company in the fund.
Estimates are that Micron Technology’s revenue and profitability growth accelerated in the fourth quarter. The average estimate is that its revenue surged to $51 billion in the quarter, up by 365% from a year earlier. Its earnings-per-share, on the other hand, is expected to move to $3 in Q4’25 to $31.59 last quarter.
Micron’s earnings will likely come in well above these estimates. Still, the stock’s reaction will hinge on its forward guidance, which should offer more clarity on the business and the broader sector. A strong report could push the stock higher, which in turn would lift the DRAM ETF.
However, recently, technology companies like Oracle (NYSE:ORCL) and Broadcom (NASDAQ:AVGO) have dropped after publishing strong results.
Solidigm Potential IPO
Another potential catalyst that may boost the DRAM ETF is the upcoming Solidigm IPO, which is expected to value it at over $150 billion. Such an IPO would have an impact because it is owned by SK Hynix, the third-biggest company in the fund.
Solidigm is a major part in SK Hynix’s portfolio, where it makes high-capacity solid-state drivers (SSD) used mostly in servers and data centers. A successful IPO would be bullish for SK Hynix and the DRAM ETF.
The other potential catalyst is Kioxia Holdings, which is planning a $10 billion listing in the United States, mirroring what SK Hynix did in July.
At the same time, there are signs that these companies, despite their strong revenue growth, are highly undervalued. Micron has a forward price-to-earnings ratio of 14, while SanDisk has a meagre multiple of 8.3. Samsung Electronics has a multiple of 15, while SK Hynix has 9.2.
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