Roundhill Memory ETF (DRAM) tumbled 5.03% during intraday trading on Friday, as a confluence of negative catalysts battered memory chip stocks across the board.

The sell-off was triggered by reports that NVIDIA is evaluating a lower-than-planned memory configuration for its next-generation AI GPU, Rubin Ultra, in an effort to mitigate production constraints caused by insufficient supply of high-end High Bandwidth Memory (HBM). The market interpreted this as a signal that premium memory demand could materially weaken, sparking a broad retreat in memory-related equities. Adding to the pressure, Bernstein analysts warned that the memory price rally may be approaching its ceiling, with DRAM and NAND contract price increases narrowing to around 20% quarter-on-quarter in the third quarter of 2026, a significant deceleration from prior quarters. The firm noted that demand-side resistance from PC and smartphone markets, along with price caps in long-term agreements, are limiting further upside.

The decline also compounds selling pressure from earlier in the week, when storage giants SanDisk and Western Digital issued forward guidance that fell short of analyst expectations. SanDisk's next-quarter revenue guidance midpoint came in well below consensus, triggering widespread weakness across memory stocks. Meanwhile, DRAM spot price momentum has notably softened since late July, further undermining investor confidence in the sector's near-term outlook.