At VettaFi, we’ve been talking a lot about bottlenecks as a concept. Some of the brightest equity market opportunities for capital growth are tied to bottlenecks in a supply chain-context. The AI theme is a prime example. For instance, look at the recent record-breaking results for Micron Technology (MU). The semiconductor company is widely known for its memory and data storage products. We’ve seen semiconductors be a driving force in the AI investment theme opportunity, but memory, specifically, is its latest high profile bottleneck.
Key Takeways:
- Bottlenecks are powerful drivers of capital growth with near-term opportunities.
- Micron Technologies shows a unique paradox between momentum and deep value.
- ETFs offer diverse paths to access the squeeze.
Even as talk about over-valuation and over-exposure to AI-related names grows louder, Micron reminds us of the power of a sticky-for-now bottleneck. The company delivered a blockbuster earnings report last week, beating revenue, earnings per share, and margins. Forward guidance was also positive, as demand should continue to outstrip supply’s capabilities to keep up with it. The stock is up 265% in the first half of 2026 (as of June 30). It gained more than 834% in the past 12 months. And yet, its forward P/E is around 8–9x.
Micron delivered a “transformational earnings report,” to quote Jeremy Schwartz, who recently shared with us his midyear market views. “This is one of the key battleground stocks, and it’s a fascinating stock for indexes because it’s not an expensive stock. It’s a question of, ‘Are its earnings sustainable? Is the memory for Micron a cyclical story?’”
“We call [the latest]earnings report a transformational story because it’s an inflection for Micron,” he added. “They basically said, ‘We’ve got strategic people who are locked in memory for the next four to five years.’ The bottlenecks are not getting oversupply. It’s actually worsening, because there’s so much demand for this stuff.”
The takeaway here, as we look to the second half of the year and kick the tires on some of the hottest investment themes of 2026? It looks like this bottleneck will continue to remain in focus, as Micron offers us the latest example of the AI story’s scaffolding.
Where in ETFs Is Micron?
Micron is the single largest holding in the Roundhill Memory ETF (DRAM), at about 25% weighting — the year’s most successful thematic ETF launch, focused on the high-profile AI-related bottleneck around memory capabilities.
However, that’s just one portfolio offering direct access to this name. There are more than $220 million worth of Micron shares today, spread across over 600 different ETFs.
Many broad-based equity portfolios own it. Some narrowly focused funds capturing semiconductors, or broader AI strategies and tech, own it, as well. Growth ETFs like WisdomTree U.S. Quality Growth Fund (QGRW) invests in Micron, as do momentum ETFs like the Invesco S&P 500 Momentum ETF (SPMO), as well as single-stock plays and funds like DRAM. (Check out our ETF Stock Exposure Tool for a complete list.)
Micron is also a key holding in the NEOS Long/Short Equity Income ETF (NLSI), which generates high monthly income through options on a long/short portfolio of equities led by an allocation to Micron. NLSI’s distribution rate is 5.3%.
But one of the largest allocations to Micron today sits in a fund that may surprise many: the iShares MSCI USA Value Factor ETF (VLUE). VLUE sets out to own undervalued stocks with high growth potential long-term, and Micron leads its holdings. Similarly, the stock is in the Goldman Sachs Value Opportunities ETF (GVLE). We may be suffering from a little bit of AI-fatigue, but talk about the staying power of this bottleneck, when a stock that’s up more than 800% in one year is still a top value pick!
What’s interesting about bottlenecks is that they aren’t necessarily long-term plays. As Brian Coco, chief product officer and head of VettaFi’s index team, puts it: “When margins explode, capitalism solves for it.”
Bottlenecks are, by design, near-term opportunities for capital growth. How long the opportunities last — until some sort of innovation or disruption brings supply chains back into balance — varies. But they are very powerful, as Micron is showing us. And ETFs across all sorts of strategies and themes can offer unique, direct access to them.
Finally, if you’d like to hear Jeremy Schwartz’ complete view on markets, catch a replay of our Midyear Market Symposium here.
Originally posted on ETF Trends
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