The Roundhill Memory ETF (DRAM) plunged 5.90% in pre-market trading on Thursday, as the memory sector faced heavy selling pressure following disappointing forward guidance from key constituents SanDisk and Western Digital.

Both SanDisk and Western Digital reported quarterly results after hours on August 5 that exceeded current-quarter expectations. SanDisk posted revenue of $8.97 billion, up 372% year-over-year, and adjusted EPS of $39.25, both beating consensus. However, SanDisk's next-quarter revenue guidance midpoint of approximately $10.55 billion fell significantly short of the $11.16 billion analyst consensus, and Western Digital similarly issued below-consensus guidance. SanDisk shares fell over 8% in after-hours trading, while Western Digital dropped more than 11%, dragging the broader memory complex lower.

Analysts noted that in the current high-valuation environment, merely delivering strong quarterly results is insufficient; investors demand continuously upgraded forward outlooks. The guidance shortfall represents an expectation gap correction across the storage sector, marking a sharp reversal from the prior session's gains when the ETF surged over 5% on news that major DRAM producers had sold out capacity through 2027.