Dave Mazza, CEO of Roundhill Investments, stated this week the memory chip trade is shifting focus to fundamentals. This shift precedes Micron's upcoming earnings report. Mazza noted in a CNBC interview that a recent 25-35% sector drawdown flushed out significant leverage. This sets the stage for a more fundamentally driven market.
Mazza highlighted strong underlying demand for memory. This demand stems from the build-out of AI infrastructure, regardless of the pace of investment in frontier AI models. He described Micron's pending earnings as a "real tone setter." These earnings will provide crucial signals for the memory market's direction. This commentary coincides with a recent rebound in the Roundhill Memory ETF (DRAM) and other semiconductor stocks.