If you open any financial news network today, there is one word dominating the entire technology conversation: memory. While the media remains fixated on the primary chip designers, the actual physical limit of artificial intelligence has quickly shifted upstream to High-Bandwidth Memory (HBM). Without these vertically stacked, ultra-fast memory modules, next-generation AI processors are essentially left starving for data.
For investors constructing precision portfolios, we believe capturing this highly demanded hardware segment is no longer optional. We feel the true economic moats belong to the select few global companies that possess the raw manufacturing capacity and engineering expertise to build HBM.
To help investors target this critical bottleneck, we launched the PurePlay NVIDIA Ecosystem Picks & Shovels Index ETF (NASDAQ: NVPS). NVPS provides direct, unified exposure to the physical backbone of the AI boom—including advanced lithography, high-speed networking, liquid cooling, and the leading global memory providers.
Explore the NVPS Prospectus and Current Holdings Here
Sold Out: Unprecedented Demand for HBM
The high-performance memory market is no longer operating on the volatile commodity cycles of the past. To construct HBM, manufacturers must physically stack multiple layers of Dynamic Random Access Memory (DRAM) on top of each other and connect them using advanced packaging techniques. This process is so technically difficult that production yields remain highly constrained, creating a severe structural supply deficit globally.
As a result, the dominant three global players—SK Hynix, Micron, and Samsung—have already completely sold out their HBM production capacities through the end of 2026 [Sources: SK Hynix Corp. Q4 Investor Relations Briefing; Micron Technology Inc. Q3 FY2026 Earnings Call Disclosures; Samsung Electronics Co. HBM4 Global Allocation & Production Strategy Disclosures]. Tech giants and cloud hyperscalers have signed massive, binding multi-year contracts worth billions of dollars just to lock in their allocations [Sources: Bloomberg Intelligence, Cloud Infrastructure Capex & Hyperscale Allocation Tracking; TrendForce Memory Market Deep-Dive Reports]. This massive supply shortage has handed these memory manufacturers unprecedented, highly resilient pricing power [Source: TrendForce, High-Bandwidth Memory Pricing and Oligopoly Analysis; TechInsights & Gartner Semiconductor Supply Chain Equilibrium Briefings].
The Valuation Disconnect: Micron at 8x Forward P/E as of July 28, 2026
Despite these historic multi-year order books and guaranteed revenue lines, a remarkable valuation disconnect has opened up in the equity markets [Source: FactSet Consensus Estimate Database]. As of July 28th, 2026, Micron Technology is trading at a highly compressed forward price-to-earnings ratio of roughly 5.20x [Source: Bloomberg Equity Valuation Terminal, Forward P/E Metrics for MU as of July 28, 2026].
This valuation mismatch is almost unheard of for a major technological leader sitting at the core of a secular, multi-decade buildout [Source: Morgan Stanley Equity Research, Global Semiconductor Valuation Models]. While Korea-listed SK Hynix currently commands the majority of overall HBM market share, Micron remains the primary U.S.-listed pure-play, making its current valuation an incredibly attractive entry point for institutional capital looking to secure high-growth assets at defensive multiples [Source: TrendForce, Global HBM Vendor Market Share Rankings].
A Diversified Approach to Physical AI
The memory supercycle is a massive engine of growth, but we feel that physical bottlenecks are never static. As memory capacity scales, we believe the limits of data centers will inevitably migrate to advanced packaging, optical connectors, and liquid cooling.
Broad tech index funds frequently dilute this hardware thesis by holding heavy weightings in traditional consumer software, social media, or legacy internet platforms. NVPS is built differently. It offers a clean, unbundled alternative: direct ownership of the physical, irreplaceable factories and infrastructure providers that are physically manufacturing the future.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please visit the website at www.pureplayetfs.com. Read the prospectus or summary prospectus carefully before investing.
The Fund is distributed by Foreside Fund Services, LLC. Exchange Traded Concepts, LLC serves as the investment advisor of the Fund. Foreside Fund Services, LLC is not affiliated with Exchange Traded Concepts, LLC or any of its affiliates.
Risk Disclosures:
Investing involves risk, including possible loss of principal. There is no guarantee the Fund will achieve their stated objectives.
New/Smaller Fund Risk. A new or smaller fund is subject to the risk that its performance may not represent how the fund is expected to or may perform in the long term. In addition, new funds have limited operating histories for investors to evaluate and new and smaller funds may not attract sufficient assets to achieve investment and trading efficiencies.
Non-Diversification Risk. The Fund is non-diversified under the 1940 Act, meaning that, as compared to a diversified fund, it can invest a greater percentage of its assets in securities issued by or representing a small number of issuers. As a result, the performance of these issuers can have a substantial impact on the Fund’s performance.
NVIDIA Dependence Risk. Because the Index is designed to provide exposure to companies that have a material commercial relationship with NVIDIA, the Index, and therefore the Fund, is highly sensitive to NVIDIA-specific developments. Actual or perceived adverse events at NVIDIA, including financial distress, demand declines, supply or regulatory disruptions, litigation, reputational harm, strategic shifts, or insolvency, could impair the results and valuations of Index constituents that rely on NVIDIA as a key customer, supplier, or technology partner, leading to material declines and heightened volatility in the Fund.