The Roundhill Memory ETF (DRAM) tumbled 6.71% in pre-market trading on Tuesday, extending a sharp selloff as a confluence of bearish catalysts hammered the global memory chip sector.

The decline was primarily triggered by the historic trading debut of Chinese memory chipmaker ChangXin Memory Technologies (CXMT), whose shares skyrocketed over 465% on Monday. The overwhelming demand for CXMT shares siphoned liquidity away from established memory names, triggering a dramatic capital rotation that pressured DRAM’s key holdings, including Micron Technology, Samsung Electronics, and SK Hynix.

Compounding the rout, analysts warned that memory chip prices may be approaching their peak. Jefferies indicated that the visibility for further sequential price increases in 2027 is low, while Morgan Stanley cautioned that memory contract prices could peak as early as the fourth quarter. The negative sentiment was further reinforced by a deepening selloff in Asian markets, where South Korea’s KOSPI index plunged and SK Hynix shares tumbled more than 9%, wiping out approximately $470 billion in market value as concerns over the sustainability of the memory chip boom intensified.