The Roundhill Memory ETF (DRAM) plummeted 5.05% during Tuesday's intraday session, reflecting heightened investor concerns over a potential future oversupply in the memory chip market.

The sharp decline followed news that Chinese memory-chip maker Yangtze Memory Technologies Co. (YMTC) has officially begun its prelisting regulatory review process, taking a major step toward a highly anticipated initial public offering. As a state-backed champion and the world's sixth-largest NAND flash supplier, YMTC's capacity expansion could increase the global supply of memory chips.

Further pressure came from a prediction by a former Samsung semiconductor division president, who stated that Chinese companies are actively expanding production capacity. He indicated that as the supply of memory chips surges, market prices could drop in the second half of next year or the first half of 2028, shifting the current landscape of supply shortages. Concurrently, progress in Samsung Electronics' labor negotiations, which lowers the risk of a major strike disrupting production, also contributed to easing supply concerns that had previously supported prices.