Why did the memory chip ETF outperform Nvidia, AMD, and Broadcom?

Due to surging demand for high-bandwidth memory (HBM) chips used in AI systems, which have become a performance bottleneck.

Which companies benefit from this trend?

Major HBM producers like Samsung Electronics, SK Hynix, and Micron Technology.

Does this mean Nvidia and AMD are bad investments?

No, they remain leaders in AI processors, but memory chips represent a separate opportunity that may offer higher returns in certain periods.

Memory Chip ETF Crushes Nvidia, AMD, and Broadcom in 2026

A New York Stock Exchange-listed ETF targeting memory chip companies is outperforming Nvidia, AMD, and Broadcom in 2026, capitalizing on the growing demand for high-bandwidth memory in AI applications.

July 20, 2026

2 min read

Source: Motley Fool

According to a report from Motley Fool, 2026 is witnessing exceptional performance from a new NYSE-listed ETF focused on memory chip companies, outperforming semiconductor giants like Nvidia (NVDA), AMD (AMD), and Broadcom (AVGO).

Details

The ETF, whose name was not disclosed in the report, invests in companies producing high-bandwidth memory (HBM) chips, a critical component in AI systems. While Nvidia and AMD focus on GPUs and Broadcom on networking, memory chips have become a bottleneck for AI performance.

Context

Demand for HBM memory chips has surged with the acceleration of AI data center deployments. Companies like Samsung Electronics, SK Hynix, and Micron Technology are the primary beneficiaries. The ETF's performance reflects a shift in investor focus from processor makers to suppliers of essential components.

What This Means for Investors

This trend highlights the importance of diversification within the semiconductor sector. While Nvidia and AMD remain leaders in AI processors, memory chips represent a separate investment opportunity that may offer higher returns in certain periods.

Frequently Asked Questions

The ETF's name was not disclosed in the report, but it is a NYSE-listed ETF focused on high-bandwidth memory chip companies.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.