This AI Memory ETF Raised $1 Billion in One Day. Here Are 3 Stocks in Its Holdings You Should Consider Buying

Investors looking for an casual mode to pat into artificial quality stocks person a caller option: the Roundhill Memory ETF (NYSEMKT: DRAM). The money is little than 2 months old, and successful its archetypal month, astir $5 cardinal was invested successful it -- with 1 time burning done $1 cardinal alone.

The money is simply a postulation of immoderate of 13 AI companies -- dispersed crossed memory, information storage, and different companies -- including 3 fashionable stocks: Micron Technology (NASDAQ: MU), Sandisk (NASDAQ: SNDK), and Western Digital (NASDAQ: WDC).

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Here's wherefore putting a small wealth toward these companies could beryllium a astute determination close now.

Western Digital is the retention institution of AI

Western Digital has surged arsenic exertion companies are investing hundreds of billions of dollars to physique information centers for AI processing.

AI computing has led to a monolithic uptick successful Western Digital's disk retention sales, with gross rising 45% to $3.3 cardinal and diluted non-GAAP net jumping 97% to $2.72 successful the 3rd quarter.

And Western Digital's absorption sounds optimistic that existent maturation is much than a blip. "We are genuinely seeing that the AI-driven information system is creating an unprecedented request for high-capacity, reliable, high-performance retention connected HDDs [hard disk drive]."

The precocious request for retention -- paired with constricted proviso -- has helped boost Western Digital's gross margin, which conscionable crossed implicit 50% -- up from little than 40% successful the year-ago quarter.

Investors person taken announcement of each this request and person pushed Western Digital's stock terms up 1,000% implicit the past 12 months, arsenic of this writing. But adjacent with that surge, Western Digital's shares person a trailing price-to-earnings ratio of little than 29, beneath the tech assemblage mean P/E ratio of 36.

Sandisk's representation momentum is surging

Sandisk sells representation products that see everything from portable drives to PC and smartphone retention to information halfway memory. And it's this past class wherever Sandisk is experiencing the astir maturation and has the biggest potential.

The company's information halfway representation income accounted for 25% of SanDisk's income successful the 3rd 4th and are the main crushed its gross has surged 251% implicit the past twelvemonth to astir $6 billion. Sandisk CEO, David Goeckeler, summed up the information halfway accidental connected the third-quarter net call, saying, "Data halfway has go our fastest-growing market, and the workloads driving that request -- including inference, reasoning, and agentic systems -- correspond a structural and durable displacement successful however the world's astir consequential exertion is built and deployed."