Got $100? 1 Artificial Intelligence (AI) Memory ETF to Buy Right Now
Manali Pradhan, CFA, The Motley Fool
Sat, July 25, 2026 at 11:01 PM GMT+5:30
4 min read
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Artificial intelligence chips need to process massive amounts of data quickly — and to access it in an optimal way, they need that data stored nearby on high bandwidth memory (HBM) chips
For example, Nvidia’s (NASDAQ: NVDA) new Rubin GPU is designed to use as much as 288 gigabytes of HBM4, the fourth generation of high bandwidth memory. That’s nearly three times the memory used in Blackwell, its predecessor architecture. And rival Advanced Micro Devices’ (NASDAQ: AMD) MI400 series accelerators are designed to use up to 432 gigabytes of HBM4
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Because of these growing needs, there are shortages across the entire memory market, and rectifying that will require investment across the semiconductor supply chain. The iShares Semiconductor ETF (NASDAQ: SOXX) gives investors exposure to Micron Technology (NASDAQ: MU), the chip designers driving HBM demand, and the equipment suppliers helping manufacturers expand production
Why the memory supply remains tight
Increasing memory supply will require the few major players in that niche to build large and complex new chip foundries — and they are doing so. However, the pace of their expansion is constrained by long construction times, shortages of skilled workers, permitting requirements, and the need for additional energy infrastructure. Micron management says it expects supplies of DRAM and NAND to remain tight beyond 2027
For now, growth in production of HBM can tighten the broader memory market. Each new HBM generation requires more wafer supply compared to conventional memory, putting additional pressure on the supply available for non-HBM. Expanding output requires memory producers to invest in more advanced manufacturing and packaging equipment
These trends can benefit the components of the iShares Semiconductor ETF, which has nearly 21.4% of its assets in semiconductor manufacturing equipment makers such as Lam Research, Applied Materials, and KLA. Lam Research supplies etching and deposition tools used in advanced memory production. Applied Materials provides equipment for DRAM manufacturing and HBM packaging. KLA’s inspection tools help chipmakers detect defects and improve production yields
Capturing the broader memory opportunity
The iShares Semiconductor ETF also provides exposure to the companies producing memory and driving its demand. The fund owns 30 stocks and charges a 0.34% expense ratio
