How Your Portfolio Can Benefit from Memory Chip Shortages

How Your Portfolio Can Benefit from Memory Chip Shortages

Thu, August 27, 2026 at 10:27 PM GMT+3 2 min read

Howard Chan, founder and CEO of Kurv Investment Management, sat down with host Brad Roth on the latest episode of Behind the Ticker to talk about the recently launched Kurv Memory Select ETF (KMEM). The strategy offers a concentrated approach to memory chip investing while benefitting from the growing bottlenecks in memory chip production. If you prefer to watch this conversation, you can do that here or on our YouTube channel.

• The next AI bottleneck isn't compute but memory. Howard Chan of Kurv argues that after years of chasing Nvidia and compute power, the real constraint has shifted to memory chips, which let AI models retain context instead of hallucinating. Just three companies control 90% of global supply, and they're sold out through 2028.

• This scarcity has flipped the industry's economics. Building new fabs costs $30-50 billion and takes years, while only one company (ASML) makes the specialized lithography equipment required. The result was SK Hynix's revenue jumped 250% and profit 500%, as memory makers shift from price takers to price setters. These shifts are now having knock-on effects, raising the cost of iPhones, MacBooks, and Xboxes along the way.

• Kurv built KMEM to bet directly on this thesis. The Kurv Memory Select ETF (KMEM), launched this summer and holds roughly 85% of its portfolio in the top three memory producers deliberately, betting the shortage is structural and likely to persist for two to four years. Chan's team is watching hyperscaler CapEx and new market entrants as the key signals that could shift that outlook.

• The firm's flagship, KQQQ, tackles a different portfolio problem. The Kurv Technology Titans Select ETF (KQQQ) uses selective covered calls on individual mega-cap tech names to generate 15-18% income while still outperforming its underlying holdings. Chan says the two funds pair well together, giving investors growth, income, and thematic AI exposure in one strategy.

Go here to learn more about Kurv Investment Management and the ETFs discussed on this episode of Behind the Ticker.

Disclaimer: The market insights, projections, and investment strategies expressed in this article are solely those of the contributor and do not necessarily reflect the views or opinions of ETF.com. This content is provided for informational purposes only and does not constitute financial, investment, or legal advice.

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