The Roundhill Memory ETF (DRAM) tumbled 10.11% in pre-market trading on Wednesday, extending a sharp selloff across the global memory chip sector as fears mount that the AI-driven memory boom may be nearing its peak.

The pre-market plunge comes amid growing concerns over the sustainability of elevated memory prices. Morgan Stanley recently warned that memory contract prices, which have been fueled by robust AI demand, are expected to peak by the fourth quarter, signaling a potential turning point in the cycle. This outlook has triggered a wave of profit-taking, with institutional investors including Pictet Hong Kong reducing their holdings in major memory names such as SK Hynix. The broader semiconductor sector remained under pressure, with the Philadelphia Semiconductor Index falling sharply in the previous session as investors rotated out of high-flying AI hardware names.

The ETF's pre-market drop follows a brief overnight rebound attempt, as persistent cycle peak fears and a widening divergence over memory chip valuations overshadowed positive earnings results from SK Hynix. Memory stocks including SanDisk, Micron Technology, and Western Digital also suffered significant declines, reflecting the deepening selloff across the memory space.