The Roundhill Memory ETF (DRAM) surged 5.27% in pre-market trading on Monday, extending its recent rally driven by a bullish outlook for the global memory chip sector.

The movement is fueled by a significant shift in Wall Street's valuation approach for memory chip companies, with Goldman Sachs leading the charge by endorsing a paradigm shift from price-to-book to price-to-earnings multiples. The firm raised price targets for key DRAM holdings including SK Hynix, Samsung Electronics, and Kioxia, citing the industry's transition from a cyclical commodity to a strategic AI infrastructure resource with predictable earnings.

Analysts point to sustained AI-driven demand, particularly for high-bandwidth memory chips used in data centers, coupled with constrained supply growth and the increasing adoption of long-term agreements as key factors reshaping the sector's fundamentals. The broader enthusiasm for AI investments continues to drive capital inflows into memory-related assets, supporting the ETF's performance.