Micron handed over its strongest quarterly report, can the 2x leveraged ETF “RAM” still get on the bus
Author: Curry, Tide Research
Original title: Storage chip 2x leverage ETF listing: After Micron's earnings report blew through expectations, should $RAM be used to increase leverage?
Guide
“RAM,” a 2-times leveraged ETF that tracks the theme of memory chips, went public on June 24. On the same day, Micron handed over the strongest quarterly report in history with revenue of $41.5 billion and gross margin of 84.9%, which rose more than 12% after the market.
The underlying target DRAM ETF attracted more than 20 billion US dollars in less than three months after listing, but currently it has pulled back about 16% from a higher point. RAM can amplify rebound gains and can also amplify retracement damage. This article breaks down RAM's product mechanism, core risks, and the profit and loss logic of current purchases.
The memory chip sector is in a delicate position: fundamentals have never been stronger, but prices have fallen from their highs.
The 2-leveraged ETF “RAM,” which went public on June 24, brought this question to every investor concerned about the storage racetrack — is adding leverage in the pullback a sharp tool or an amplifier that accelerates losses?
Before answering this question, let's take a look at what happened that day.
Micron's revenue of $41.5 billion in a single quarter, and the storage supercycle has received the hardest verification
After the market on the day RAM went public, Micron Technology announced the results for the third fiscal quarter of fiscal year 2026.
According to Micron's 8-K filing with the SEC, revenue for the quarter was $41.46 billion, up 346% year over year, significantly exceeding Wall Street's consensus estimate of about $34.7 billion. Non-GAAP earnings per share were $25.11, and the consensus estimate was around $20. The gross profit margin was 84.9%, setting a new company record, and was only 39% in the same period last year. DRAM products contributed $31.3 billion in revenue (accounting for 76%), and the data center business grew more than 7 times year over year to $11.5 billion.
More critical is forward-looking guidance: Q4 revenue guidance is $50 billion (± 1 billion), with gross margin of around 86%. CEO Sanjay Mehrotra also announced the signing of 16 strategic customer agreements to lock in multi-year supply commitments. According to CNBC, the American Disc rose about 12.6% after that.
The significance of this financial report is that it validates the core logic of the storage supercycle. Supply is limited, prices continue to rise, and profit margins are still expanding. Goldman Sachs previously estimated the DRAM supply and demand gap of 4.9% in 2026, the most severe in nearly 15 years. Micron disclosed that the company can only meet 50% to two-thirds of customer needs in the medium term, and that HBM production capacity for the whole year has been locked in the contract. This is the most important fundamental background for investors considering using RAM as leverage.
What is RAM: 2x intraday leverage to track the fastest growing ETF in history
The full name of RAM is Roundhill T-REX 2X Long DRAM Daily Target ETF, which is jointly issued by Roundhill Investments and T-REX (a joint venture between REX Shares and Tuttle Capital Management) and listed on the Cboe BZX exchange on June 24.
Its target is the Roundhill Memory ETF (code DRAM), a pure memory chip-themed ETF that only includes companies with more than 50% of their revenue from the storage business. DRAM was listed on April 2, breaking the $1 billion management scale in 10 trading days. As of June 24, AUM surpassed $20 billion and a total return of 179.84%, making it the fastest growing product in the ETF industry's history.
RAM's mechanism: Every trading day, the goal is to achieve 200% of DRAM's revenue for the day. DRAM rose 3%, RAM target increased 6%; DRAM fell 3%, and RAM target fell 6%. Net rate 1.25% (waived until September 2027). The custodian is Citibank. Options trading is currently not supported.
DRAM ETF holdings are highly concentrated:
SK Hynix is about 29%, Micron is about 27%, and Samsung is about 21%. Together, the three stocks account for about 77% of the fund's net assets. The remaining holdings include Kioxia, SanDisk, Western Digital, Seagate, etc., all of which are in low single digits. These three companies also happen to be the only three HBM suppliers in the world.
RAM's Three Core Risks: What Happens When You Hold It Without Moving
The risk of RAM is not in determining the direction, but in how it is held. Roundhill clearly warned in the recruitment letter that the fund is “not suitable for all investors” and is only for investors who understand leverage risk and are willing to frequently monitor their positions.
Risk 1: Volatility declines. Leveraged ETFs are rebalanced on a daily basis, and even if the underlying asset eventually remains flat in a volatile market, leveraged ETFs will lose money. Simple example: DRAM rose 10% on the first day and fell 10% on the second day. After two days, the net DRAM value became 99% (loss 1%), but the net RAM value became 96% (loss 4%). The more intense the oscillation and the longer the holding time, the more obvious the attenuation. This means that RAM is suitable for short-term directional trading and not for long-term holding.
Risk 2: Concentration of positions combined with leverage. 77% of DRAM ETF positions are concentrated in three stocks, and RAM is leveraged by 2x. South Korea's KOSPI plummeted 10% on June 23, Samsung and SK Hynix both fell more than 12%, and the DRAM ETF fell about 14% on the same day. If RAM had been on the market at the time, the single-day decline would theoretically be close to 28%. Although KOSPI rebounded 3.3% the next day, this extreme fluctuation combined with the impact of 2x leverage severely tested the ability to manage positions.
Risk 3: Time zone mismatch. About 49% of the DRAM ETF's underlying assets (Samsung, SK Hynix) are traded in Seoul, and their prices cannot be reflected in real time during the US stock trading session. Overnight fluctuations in Korean stocks will be released centrally when US stocks open, causing a gap. RAM magnifies this gap by a factor of 2.
Current location: 16% pullback plus leverage?
By the close of June 24, the DRAM ETF reported $68.35, down about 16% from the 52-week high of $81.34 on June 19. Micron closed at $1057.59, rising about 12.6% to around $1190 after the market due to earnings reports.
Using a simplified model: Assuming that Micron's earnings report catalyzes the DRAM ETF to rebound 8% on June 25 (considering a simultaneous rebound in Korean stocks), RAM's target return is around 16%. Conversely, if the market “runs out of favor” for Micron's earnings report and the DRAM ETF falls by another 5%, RAM will lose about 10%.
It's important to note that the DRAM ETF is still seeing a huge increase (total return of 179.84%) from the April listing price to the current $68. Even with a 16% correction from a high point, the current price has caused a loss for investors who have opened positions at a high level.
RAM entered this position, betting that Micron's earnings could trigger a new rebound cycle rather than continue the pullback.
Data supporting this judgment: Micron's Q4 guidance of $50 billion far exceeded market expectations, which means that revenue will also increase by 20% month-on-month. According to Everstream Analytics, around 70% of high-end DRAM production capacity will go to AI data centers in 2026. SK Hynix's Q1 operating margin reached 72% in 2026. Many agencies expect storage shortages to continue into 2028 and beyond.
But there are also negative signs.
Of the 27 analysts covering Micron, 25 gave a buy rating. The average target price was only about 3% higher than the closing price on June 22, and the upward space is already tight. In just three months since the DRAM ETF was listed, it triggered fluctuations in the fusing level of Korean stocks twice, indicating that the beta in this sector is extremely high. Using RAM plus leverage is essentially using 2x leverage to make a beta asset that is already extremely high. The rewards are impressive in the right direction, and the exit window may be much narrower than expected in the wrong direction.
Who should use RAM and who shouldn't
RAM is suitable for investor portraits:
Have intraday or short-term (within a few days) trading habits,
Have a clear direction for the memory chip sector, can withstand fluctuations of 20% or more in a single day, and understand that leveraged ETFs are not equal to “double the return.”
Unsuitable investors:
The plan has been held for more than a week
Think of RAM as an “enhanced” long-term configuration for DRAM ETFs. Volatility will continue to erode earnings in medium to long-term holdings, and even if the direction is correctly determined, the final return may be significantly lower than expected.
For investors who are optimistic about storing supercycles but don't have intraday trading capabilities, the DRAM ETF itself (0.65% rate, no leverage) may be a more robust choice. The current price of $68 is back 16% from the high point. If the fundamental logic verified by Micron's earnings report is accepted, the DRAM ETF allows investors more room for correction after making mistakes; RAM does not give room for this.
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