The Roundhill Memory ETF (DRAM) fell 5.11% in pre-market trading on Wednesday, reflecting a sharp sell-off in the memory sector.

The decline coincided with reported weakness in major AI and semiconductor stocks during the pre-market session. Market analysis points to growing investor apprehension over a potential slowdown in artificial intelligence demand growth. A key market indicator tracking LLM token expenditure has recently lost momentum, signaling a shift in focus from AI's technical expansion to its cost sustainability, which could dampen future demand for the memory chips essential for AI infrastructure.

This development has led to a reassessment of the growth trajectory for companies within the AI hardware supply chain, including memory manufacturers, contributing to the downward pressure on the memory-focused ETF.