The Roundhill Memory ETF (DRAM) fell sharply, plunging 5.15% during Thursday's trading session, as memory chip stocks faced heavy selling pressure across global markets.

The sell-off was triggered by concerns over potential AI computing power oversupply following reports that Meta Platforms plans to sell excess computing capacity from its data centers. This news led to a broad decline in semiconductor and memory chip stocks, with US memory chip giants Micron Technology and SanDisk both plunging over 10% in the previous session.

The weakness spread to Asian markets, where memory chip-related stocks opened significantly lower. The Philadelphia Semiconductor Index had plummeted 6% overnight, setting a negative tone for chip stocks globally. The Roundhill Memory ETF, which tracks companies in the memory and storage industry, was caught in the crosscurrents of this sector-wide downturn.