All things go through cycles, and $Roundhill T-Rex 2X Long DRAM Dly TrgtETF(RAM.US)memory is especially cyclical. The main driver is the extremely long lead time for capacity expansion. You simply can’t ramp up production fast enough to avoid mismatches when demand suddenly drops.

There are a few ways to meaningfully reduce or even largely escape traditional boom-bust cycles.

1. Customization: products aren’t interchangeable. Capacity can’t be easily redirected to other customers, so buyers have to sign long-term contracts.

2. Structural exponential demand growth: demand itself grows very steeply and consistently outpaces supply.

3. Rapid generational upgrades: each new generation quickly makes the previous one obsolete.

Hitting even one of these can take some of the sting out of traditional cycles. Hitting two or three can remove most of it.

@Bridge Buzz SG