Roundhill Investment will launch its Roundhill Photonics and Optics ETF, ticker LYTE, on Thursday after the success of its DRAM ETF.

According to Sina Finance, Roundhill's DRAM ETF, focused on memory chips, has been a major success in 2026 and has grown to nearly $25 billion since its April launch.

The new ETF targets photonics and optical networking for AI data centers, a theme that Goldman Sachs says could see the overall optical communications market grow from about $15 billion to $154 billion by 2028.

Nvidia has also invested billions of dollars in several photonics companies, and since March it has committed at least $6.5 billion to the sector, including investments in Coherent and Lumentum.

Tema ETF launched its LAZR Photonics and Optics ETF on June 30, making LYTE the second ETF in this AI niche market.