Dynamic random-access memory

Now, uh, the next thing that we have just announced is memory pooling.

So we are the first company to provide an end-to-end solution around DRAM pooling built around CXL.

So now I can have my pools of GPUs, and now I can have my pool of DRAM.

The two most expensive things in the data center can now be dynamically allocated by workload.

The days of over-provisioning your server with excess memory, those days are, are done now.

So I think there will still be a clear advantage that the West has over chips, uh, although China, um, uh, will continue to p- preference its own domestic production, uh, largely through, uh, you know, lower grade, uh, GPUs, ASICs.

But also DRAMs and memory where they actually have a distinct advantage, I think, on cost and scale.

But elsewhere in the hardware stack or the hardware outputs, and this is where I think it chimes with your, your argument, China will be, I think, the dominating power when it comes to robotics, and these are not just humanoid robots used in the home.

This is industrial robots.

Oliver, we've hit the software and services stuff.

Let's talk about the hardware, the physical, I can touch it stuff, and specifically DRAM, that ETF.

Obviously, memory is a big focus.

Tell us about what you're seeing in DRAM.

100% Dom, I'm glad you bring that one up because interestingly, it's getting hit today, down 6% right now.

So obviously the two names I just talked about are having great days, a little bit more obvious to see then bullish call buying chasing it.

But for DRAM, the flows are just persistently strong.

It seems whether the fund goes up or down, I can't think of many days, especially not multiple strings of days since this fund launched in which we see lots of bearish activity.

And so, yeah, I think my baby ready to go now.

And I did get back in the DRAM ETF as well.

Got back in DRAM as well.

That pattern saying the exact same pattern as as Micron.

And the last thing that I'm going to say before we jump into this inflation data and and get to to what we all about over here.

Yeah, I'm very open to both, for sure.

Like, at the end of the day, this just turned into both SMH and DRAM.

You know, it just became wildly over-levered players where when you have enough people in 3x ETFs, you know...

even if you just wanted to take a breather, you're going to take a 40% haircut.

In other words, the optionality of the semiconductors here is once again more attractive than it was in terms of using them as a vehicle for expressing a tactical upside without having to overpay.

And so it makes them a very interesting tool in this kind of window that if you do see the possibility that semiconductors have another leg higher, then right now using them is an interesting strategy for sure.

I remember DRAM moving 10% a day in each direction.

The vol got pretty nutty there for a while.

But there's not US companies that investors really have known about because the companies that make them have almost been untouchable for most.

And so they've been packaged together in a precise way, like we built DRAM and other ETFs to give the ability for investors to express this view on what is becoming another bottleneck in the AI trade.

And one that if you look at the bill of goods for server racks or for a NVIDIA chip, One of the components that has had the highest price increases, particularly for the high-end components that's needed in AI is actually these MLCCs.

So in these MLCCs, each one actually releases small amounts of electrical charges.

But what's happening here and now and the benefits that we are beginning to see remaining in the early days of the implementation of AI to make consumers and workers more productive, it's starting to pay off.

Yeah.

And we'll keep an eye on some of your other ETFs as well, including DRAM, NCLD, and Light.

Dave Mazza, always great to see you and have you here on the show on Schwab Network.

It's had a big two days, but still it means 18%.

DRAM down five, chips down two and a half.

So AI not having a great day, as you would kind of expect, given the backdrop there.

You know something that I got to toot our horn because nobody's going to do it for us.

Because, yeah, Intel is really, with the Aerolik refresh, they tried to reset stuff.

And, hey, listen, we understand DRAM is in a bad place right now.

So we're going to sell you our top-of-the-line chip that you can get right today for $300.

Right.

a lot of the we do the math.

Yes.

Okay, I think I think a lot of the the reason the CPUs are so Like affordable now is because they don't rely on DRAM.

Mm-hmm.