The Roundhill Memory ETF (DRAM) plummeted 8.93% during intraday trading on Thursday, as the memory sector faced intense selling pressure.

The sharp decline was triggered by disappointing forward guidance from key ETF constituents SanDisk and Western Digital. Both companies reported quarterly results after the market close on August 5 that exceeded current-quarter expectations. 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, reversing gains from earlier in the week when the ETF had surged on news that major DRAM producers had sold out capacity through 2027.