Elon Musk's latest praise for Micron Technology Inc. (MU) is putting the spotlight back on the AI memory trade. But with Micron shares still trading about 25% below their recent 52-week high, investors looking to capitalize on the sector's growth have another option to consider: ETFs targeting memory-chip makers.

The Tesla, Inc. (TSLA) and SpaceX (SPCX) CEO praised Micron on X for taking a more measured approach to future memory pricing, arguing that customers would remember which suppliers treated them fairly. Musk did not offer an investment recommendation, but his comments highlight the growing importance of memory suppliers as AI infrastructure spending expands.

Micron has delivered exceptional growth, with surging demand for data-center memory and high-bandwidth memory (HBM) supporting revenue and profitability. Management has also indicated that tight supply conditions could persist through 2028.

Despite the strong fundamentals, the stock's pullback illustrates the volatility investors face when betting on individual AI beneficiaries.

Roundhill Memory ETF Offers a Direct Play

For investors who want exposure to the memory-chip industry without concentrating their entire bet on Micron, the Roundhill Memory ETF (DRAM) offers a more targeted alternative.

The fund invests in companies involved in memory and storage, including Micron, South Korea's SK Hynix Inc. (SKHY) and Samsung Electronics. That gives investors exposure to multiple suppliers competing to meet demand for memory chips used in AI accelerators, servers, smartphones and other devices.

Unlike a single-stock investment, DRAM spreads exposure across several companies. However, it remains a concentrated sector bet, meaning a downturn in memory pricing or a slowdown in AI-related demand could weigh on the fund even if Micron-specific risks are diversified.

SOXX and SMH Offer Broader Semiconductor Exposure

Investors seeking a wider slice of the AI chip trade can also look at the iShares Semiconductor ETF (SOXX) and the VanEck Semiconductor ETF (SMH).

Both funds provide exposure to semiconductor companies beyond memory manufacturers, including businesses involved in processors and other chip technologies. Their broader portfolios can help investors avoid relying exclusively on the memory cycle, although their performance remains sensitive to semiconductor valuations and AI spending trends.

The key distinction is how directly investors want to participate in the memory boom. DRAM provides a more focused route, while SOXX and SMH offer broader semiconductor exposure.

Can Memory ETFs Withstand a Pullback?

Micron's 25% retreat from its peak raises a question for ETF investors: Is the decline an opportunity to gain exposure to a durable AI infrastructure trend, or a warning that expectations have become too aggressive?

Looking at the valuations, Micron trades at a forward P/E of about 7x, and analysts expect strong earnings growth.

Persistent supply constraints and rising demand could support memory makers' earnings, but semiconductor stocks remain cyclical and can react sharply to changes in pricing, capacity and growth forecasts.

Musk's endorsement may reinforce the narrative around Micron's customer relationships, but it does not remove those risks. For investors, the more important consideration is whether the underlying memory boom can sustain earnings growth, and whether a focused memory ETF or a broader semiconductor fund best matches their appetite for volatility.