The Roundhill Memory ETF (DRAM) surged 5.88% in pre-market trading on Tuesday, reflecting a significant rally in memory and semiconductor stocks.

The move was driven by renewed optimism about memory-chip demand fueled by the artificial intelligence boom. Analysts point to the release of competitive, low-cost Chinese AI models like Moonshot AI's Kimi K3, which, despite initial concerns, is seen as potentially increasing total AI workloads and the consequent need for high-performance memory. As AI models grow larger, the requirement for memory to support more parameters increases, benefiting major suppliers.

Further catalysts include warnings of continued supply tightness and bullish price forecasts for memory chips. SK Group Chairman Chey Tae-won warned that current memory chip prices are in an abnormal state, projecting overall memory demand to surge nearly 60% next year with supply shortages persisting. Investment bank KeyBanc forecast Q3 DRAM prices to rise 15%-20% quarter-over-quarter, with NAND flash surging 30%-40%, while TrendForce projected Q3 DRAM contract prices to climb 13% sequentially.