Manager of DRAM memory chip stock trade blockbuster ETF is back with new AI thematic bet

• Roundhill's DRAM ETF became the first fund to reach $10 billion in assets within 10 days of launch, demonstrating the firm's track record with niche AI-related investment themes
• Goldman Sachs forecasts the optical networking market will expand more than nine times from 2026 through 2028, while Nvidia has committed billions to photonics companies and plans its Feynman architecture for 2028
• Roundhill will be second to market after Tema ETFs launched LAZR on June 30, though LAZR has only attracted $18 million in assets amid recent AI sector volatility

Summary: Roundhill Investments Launches Photonics ETF Following DRAM Success

Roundhill Investments, which achieved remarkable success with its DRAM memory chip ETF (amassing nearly $25 billion since April 2026), is launching the Photonics and Optics ETF (LYTE) on Thursday. The fund targets the emerging photonics sector, driven by AI data center optical networking demands.

Market Opportunity:

Goldman Sachs projects the total addressable market for optical networking will surge from $15 billion (2026) to $154 billion by 2028—a ninefold increase. Optical networking uses light pulses instead of electrical signals, offering faster speeds, greater energy efficiency, and longer transmission distances critical for AI infrastructure scaling.

Key Industry Players:

Nvidia has invested billions in photonics companies, including stakes in Marvel and others, since March 2026. CEO Jensen Huang has called photonics essential for "next generation of gigawatt-scale AI factories." Nvidia's Feynman architecture, scheduled for 2028, represents a major pivot from copper to photonics technology.

Competitive Landscape:

Roundhill enters as the second manager in this niche—Tema ETFs launched the LAZR Photonics & Optics ETF on June 30, though it has attracted only $18 million in assets. LAZR's top holdings include Lumentum (14.95%), AXT (11.26%), and Anthropic (11.04%). Recent photonics stocks like Lumentum and Nlight have risen approximately 100%.

Investment Considerations:

Roundhill's DRAM ETF became the first to reach $10 billion in just 10 days, demonstrating strong investor appetite. However, experts caution that photonics investments carry significant risk, as growth depends on continued AI buildout. VettaFi recommends thematic ETFs comprise only 10% of broader portfolios, with parallels drawn to dotcom bubble-era telecom fund concentrations.