The Roundhill Memory ETF (DRAM) fell as much as 3.3% Thursday, putting it on track for its longest losing streak since inception and an eighth consecutive weekly decline. Yet Roundhill Investments CEO Dave Mazza said memory-chip demand remains strong, with supply sold out through 2027.

• Roundhill Memory ETF stock is under selling pressure. Why are DRAM shares declining?

In an interview with CNBC, Mazza said investor sentiment has soured amid concerns about Chinese competition, Broadcom, Inc (AVGO) CEO Hock Tan's comments on AI productivity and easing memory shortages, and a challenging macroeconomic backdrop. He maintained that memory-chip makers remain central to the AI buildout, adding that longer-term customer contracts could reduce earnings cyclicality and support higher valuation multiples.

Mazza also called reports of Chinese memory-chip maker CXMT competing in advanced memory markets "unsubstantiated" and "unverified," noting that scaling the technology could take until 2028–2030.

The weakness extended across semiconductor ETFs, with the VanEck Semiconductor ETF (SMH) down more than 2%, on track for an eighth consecutive session of losses, while the Technology Select Sector SPDR Fund (XLK) fell around 1.3%.

Hotter-than-expected inflation added to concerns that the Federal Reserve could keep rates higher for longer, potentially weighing on data center construction and enterprise hardware spending.

QUICK CONTEXT: Memory Chips Remain Central To AI Growth

Memory chips, including DRAM and high-bandwidth memory (HBM), are critical to AI infrastructure because they help processors access and move data efficiently. Demand from AI accelerators and data centers has supported memory manufacturers, while supply constraints can strengthen pricing power and profitability.

However, memory remains a cyclical industry. Periods of strong demand and limited supply can drive prices and earnings higher, but new capacity or weaker demand can reverse that trend. Longer-term supply agreements could make revenue more predictable, although they would not eliminate risks from pricing shifts, competition or capital spending.

For ETF investors, DRAM offers concentrated exposure to memory-related companies, while SMH provides broader semiconductor exposure and XLK covers a wider range of technology stocks. Their recent declines highlight how quickly sentiment can shift even when industry fundamentals remain supportive.

The key question is whether tight supply and sustained AI investment can outweigh concerns about competition, inflation and the timing of future demand.