Photo via roundhillinvestments.com
Memory chip stocks pulled back hard this month. Dave Mazza, CEO of Roundhill Investments, told Fox Business the pullback is a repricing, not a breakdown.
Most traders read the China threat as a straight demand shock. Dave reads it as a valuation problem instead — these stocks are shifting from boom-bust cycles to long-term contracts, and the market hasn't settled on the multiple that deserves.
"The trade has been volatile, but it's far from over."
Dave runs Roundhill Investments, the ETF issuer behind some of the market's more targeted thematic funds, including one tracking the memory chip trade directly.
The full segment is covered here so you can skip it.
Here are the 4 takeaways that matter.
Fox Business Clips · Oct 25, 2026
With Dave Mazza, CEO at Roundhill Investments
Key Takeaways
CXMT's commodity-memory capability is real, not a joke — the bigger issue is valuing stocks shifting from cyclical to long-term-contract businesses
The DRAM ETF is holding its summer support level despite breaking some moving averages, with call buyers positioning for the dip
Nvidia raised prices on 3-year-old H100 chips this October, which Dave reads as proof their useful life runs longer than the market assumes
Rate moves, not demand, first cracked the neocloud trade — when the 10-year Treasury spiked, credit markets wobbled and the stocks followed
1. A Repricing, Not A Breakdown
The segment opened on the China threat to memory chip names.
CXMT's scale is real — the actual problem is a valuation question
"The news from CXMT shouldn't just be taken as a joke. It is real." — Dave Mazza
Dave said these stocks are shifting from boom-bust cyclicals to businesses anchored by long-term customer agreements, and the market hasn't decided what multiple that transition deserves — the real question behind the pullback, not a demand collapse.
