The Roundhill Memory ETF (DRAM) plunged 9.82% intraday on Tuesday, reflecting a brutal global selloff in the memory chip sector. The sharp decline came as a confluence of bearish catalysts hammered semiconductor stocks, erasing billions in market value across the industry.

The selloff was primarily triggered by the historic trading debut of Chinese memory chipmaker ChangXin Memory Technologies (CXMT), whose shares skyrocketed over 465% on their first day of listing. This overwhelming demand triggered a dramatic capital rotation out of established global memory leaders such as SK Hynix, Samsung Electronics, and Micron Technology. Compounding the rout, Morgan Stanley warned that the AI-driven semiconductor memory boom is nearing an inflection point, with memory contract prices expected to peak in the fourth quarter. Jefferies analysts also indicated that visibility for further sequential price increases is low, suggesting the peak in memory chip prices may come sooner than expected.

South Korea’s KOSPI index plunged over 10%, with SK Hynix falling more than 13% and Samsung Electronics dropping 13.39%—its worst single-day decline since October 2008. SK Hynix has seen approximately $470 billion in market value evaporate since its June peak. The intensified competition from China’s DRAM industry and growing institutional caution on valuations have fueled fears that the memory chip boom is unsustainable, leading to the broad-based decline in the Roundhill Memory ETF.