The Roundhill Memory ETF (DRAM) tumbled 5.02% in after-hours trading, extending a sharp decline as the global memory chip sector faced intense selling pressure.

The selloff comes amid growing concerns that the AI-driven memory boom may be nearing its peak. Morgan Stanley recently warned that memory contract prices fueled by AI demand are expected to peak by the fourth quarter, signaling a potential turning point in the cycle. This outlook has triggered a wave of profit-taking, with institutional investors including Pictet Hong Kong reducing their holdings in major memory names like SK Hynix. SK Hynix alone has lost approximately $470 billion in market capitalization since its June peak, while other memory stocks such as SanDisk, Micron Technology, and Western Digital also suffered significant declines in recent sessions.

The broader semiconductor sector remained under pressure, with the Philadelphia Semiconductor Index falling sharply as investors rotated out of high-flying AI hardware names. The widening divergence over memory chip valuations and fears of a cyclical downturn have fueled the ongoing selloff in the memory space.