Google’s new “TurboQuant” technology recently claimed that it can reduce memory usage for large language models by at least sixfold, which in turn could cut the overall cost of training artificial intelligence (AI), per Bloomberg, as quoted on Yahoo Finance.
Since memory is a critical component in AI hardware – especially in systems powered by NVIDIA Corp. NVDA — the announcement initially raised fears of weaker demand for memory. Following the news, shares of memory manufacturers sold off.
Analysts at JPMorgan Chase & Co. noted that while the news may trigger short-term profit-taking, it does not pose a near-term threat to memory demand, as mentioned in the above-said source.
Against this backdrop, below we highlight a few likely winners and losers in the exchange-traded fund (ETF) space from a short-term perspective.
Short-Term Winners
Roundhill Generative AI & Technology ETF CHAT
The fund added 2.1% on March 25, 2026 and advanced about 1% after hours. And why not? The Alphabet Inc. GOOGL unit’s recent claim is likely to boost AI payoffs – an area where investors have recently had doubts. Most market watchers have been worried about massive investments made in the AI space lately, which have yet to deliver sufficient returns. Many investors remain skeptical about the payoff timeline.
Roundhill Magnificent Seven ETF MAGS
According to Morgan Stanley analyst Shawn Kim, the above-said technology enhances returns for hyperscalers by improving cost efficiency and performance. The move could accelerate adoption of AI workloads. With Magnificent Seven companies committed to AI, the ETF may now have room to run. MAGS ETF gained 0.6% yesterday, although it lost about 0.7% after hours.
Short-Term Losers
Direxion Daily MU Bull 2X ETF MUU
Micron Technology MU shares lost 3.4% on Wednesday due to the news and fell another 1.9% after hours. The ETF MUU slumped about 7% on the day, with an additional after-hours loss of about 4%.
Note that Micron manufactures and markets high-performance memory and storage technologies, including Dynamic Random Access Memory (DRAM), NAND flash memory, NOR Flash, 3D XPoint memory, and other technologies, which makes it vulnerable to this development.
iShares MSCI South Korea ETF EWY
SK Hynix shares lost about 6.2% on March 26. SK Hynix is a crucial maker of memory chips for AI applications, per Bloomberg, as quoted on Yahoo Finance. Memory stocks have surged in recent months due to strong AI-driven demand and supply shortages. Hence, investors may view the recent news as an opportunity for profit-taking, although medium-term fundamentals remain strong for memory makers.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
