Demand for artificial intelligence (AI) semiconductors has surged, allowing Roundhill Investment’s memory semiconductor ETF (DRAM) to attract a large amount of investment in the shortest time on record.

On May 15, CNBC cited financial data analytics firm TMX VettaFi as saying the Roundhill Memory ETF (DRAM) topped $9.8 billion in assets under management (AUM) 43 days after launch, setting a record for the shortest time in ETF history.

The record shows that as the AI market grows rapidly, global investors are strongly concentrating money in specific core components within the semiconductor value chain. The market is also quickly expanding its interest in related companies and products as the importance of memory semiconductors becomes clear in building AI infrastructure.

Market experts cite the scarcity of manufacturers of high-bandwidth memory (HBM) and specialised DRAM chips as the backdrop to the rapid short-term growth. They say a supply structure in which a small number of companies monopolise key elements of AI infrastructure has accelerated inflows of assets.

Dave Mazza (데이브 마자), chief executive officer of Roundhill Investment, said investors are beginning to clearly recognise that the biggest bottleneck in building AI infrastructure is memory semiconductors. The memory market is currently experiencing an unprecedented supply shortage, and the supply-demand imbalance is a key driver pushing up share prices of related companies.

The trend also intersects with structural change in the memory semiconductor industry. In the past, the industry showed an extreme cyclical pattern of booms and busts tied to economic fluctuations. That was because memory chips were a general-purpose product widely installed in consumer devices such as smart TVs, smartphones and cars. But a sharp advance in AI technology and the expansion of hyperscale data centres by global big tech companies have broken the old, standard industry cycle.

Roundhill expects the severe memory semiconductor supply shortage now being observed may not be short-lived and could persist until at least 2028. It sees demand for building hyperscale data centres, essential to advancing AI models, continuing to accumulate for years.

The market is viewing the DRAM ETF’s success as a symbolic case of the AI investment boom. Todd Rosenbluth (토드 로젠블루스), head of research at TMX VettaFi, assessed the unusual success as an investment fever comparable to a past bitcoin frenzy. He said it was highly shocking to see powerful inflows in a short period even though there was no pent-up demand. He added that certain promising thematic ETFs are widening market share by offering intuitive opportunities to invest in high-growth companies.

In the financial investment industry, optimism is prevailing that the upswing will remain solid for some time. Drew Pettit (드루 페티), a director at Citi Research, said strong corporate earnings growth is underpinning the current momentum in rising prices. This year, memory semiconductors are the sector that has seen the largest upward revisions to profit estimates in global quantitative indicators including the United States.

The analysis follows that valuations remain reasonable even if share prices have risen 300 percent in a short time. That is because earnings forecasts for related companies over the next few years have risen by more than 6 to 8 times from previous levels. Even amid recent short-term market volatility, the product is proving solid competitiveness.