Capital rotates out of big tech and bitcoin into semiconductors and memory stocks amid AI spending concerns.
Investors are pulling capital from the Magnificent 7 stocks and bitcoin, redirecting funds into semiconductors, memory stocks, and space-related opportunities. Microsoft, Meta, and Tesla have fallen 33%, 28%, and 20% from recent highs, while BTC trades 50% below its October peak.
The shift reflects growing skepticism over the sustainability of hyperscalers’ AI spending. Nvidia, Amazon, and Alphabet are all down over 10% from highs, with Apple the least affected at -7%. Memory-chip producers and server farm real estate are emerging as key beneficiaries.
The rotation suggests a broader reassessment of AI-driven growth, with investors favoring infrastructure over end-user applications.