After dominating markets in 2026, AI-linked memory and semiconductor stocks are beginning to lose momentum, raising questions about whether capital could be rotating back into bitcoin.
This year’s top equity performers have been AI-exposed chip and memory companies, which attracted significant investor flows as markets chased the dominant AI theme, leaving crypto relatively sidelined.
That leadership may now be fading as semiconductor stocks cool and bitcoin rebounds from levels near a two-year low.
ETF performance underscores the divergence. The Roundhill Memory ETF (DRAM) more than doubled in the first half of the year, while the VanEck Semiconductor ETF (SMH) gained around 60%, both driven by demand for AI computing infrastructure. By contrast, BlackRock’s iShares Bitcoin Trust (IBIT), the largest bitcoin ETF, has declined roughly 30%, broadly tracking bitcoin’s weakness.
Much of the AI-driven rally has been led by companies like Sandisk (SNDK), which has surged more than 530% on demand for NAND flash memory used in AI servers and data centers, and Micron Technology (MU), up over 230% as a key supplier of DRAM and high-bandwidth memory for AI systems.
However, recent sessions have shown signs of cooling.
The Roundhill Memory ETF has fallen about 25% from its June 22 peak, while the VanEck Semiconductor ETF is down roughly 12%. Meanwhile, bitcoin slipped below $58,000 on July 1 before recovering above $61,000.
The pullback in AI stocks accelerated after reports that Meta Platforms (META) is launching a “Meta Compute” unit to sell excess GPU capacity, raising concerns about future demand tightness in AI infrastructure.
The move hit “neocloud” providers especially hard—firms offering GPU-based computing services, including former bitcoin miners such as IREN, Cipher Digital (CIFR), and TeraWulf (WULF), all of which have dropped at least 20% from recent highs.
While it is too early to call this a confirmed rotation, the simultaneous weakness in semiconductor leaders and rebound in bitcoin may be an early signal that investors are beginning to rebalance risk back toward digital assets.
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