Morgan Stanley and JPMorgan are taking opposing views on semiconductor stocks as the AI trade matures.
Morgan Stanley warned that U.S. equities may struggle to push higher as investors rotate out of chipmakers and into hyperscalers such as Microsoft, Amazon, and Meta. The bank said momentum in semiconductor stocks is fading and maintained its year-end S&P 500 target of 8,000.
JPMorgan, by contrast, sees the recent pullback in chip stocks as a buying opportunity. The bank argued that the AI-driven semiconductor cycle remains intact, with limited new supply expected before 2028, and continues to favor chipmakers over hyperscalers.
Both semiconductor and hyperscaler indexes have pulled back from recent highs as investors reassess valuations and the sustainability of AI-driven gains. Some of that rotation may have spilled into crypto markets, where bitcoin rebounded nearly 10% last week from around $58,000.
After nearing $64,000 over the weekend, bitcoin slipped back to roughly $61,500 early Monday.
In corporate developments, BitMine (BMNR) added 42,197 ETH worth about $74 million last week, bringing its holdings to roughly 5.74 million ETH, or 4.8% of total supply. Ether fell 1.5% over the past 24 hours to $1,740.
Anthropic signed a 20-year deal with TeraWulf (WULF) for a 400-megawatt AI data center in Kentucky, expected to come online in the second half of 2027. The agreement could generate about $19 billion in revenue and sent WULF shares up 17%. TeraWulf, previously focused on bitcoin mining, is pivoting to AI infrastructure.
Meanwhile, Strategy (MSTR), led by Michael Saylor, sold 3,588 BTC for $216 million last week, a significant increase from earlier sales. The move pressured bitcoin lower by about $1,000 to $61,900.
SK Hynix is preparing for one of the largest IPOs of 2026, with Nasdaq trading set to begin July 10. The company is targeting a reference price of $158.14, implying a valuation near $1.16 trillion. Funds raised will support capital spending and advanced chipmaking equipment. Its shares in Korea have surged 260% this year on strong AI demand.
Ongoing capital flows into AI leaders and large IPOs may continue to divert investment away from risk assets like bitcoin, which remains down about 50% from its October peak.
Nine months after reaching an all-time high near $126,000, bitcoin now trades around $62,500, marking a roughly 50% correction after falling as low as $57,800. If the historical four-year cycle holds, the market bottom may still be months away, potentially into October.
Among altcoins, LIT—the token of decentralized perpetuals platform Lighter—rose 13% over the past 24 hours to $2.50, making it the top-performing top-100 cryptocurrency. The token has gained 31% since a June 30 update introducing token burns and revised staking rewards targeting a 6% annual yield.
In equities, pre-market trading showed a rebound in semiconductor, memory, and “neo cloud” stocks. SanDisk and Micron rose about 3% after last week’s declines, while IREN and Cipher Digital gained around 4% as investors bought the dip.
The price action highlights continued rotation between AI-focused equities and crypto assets. As funds moved back into semiconductors and AI names, bitcoin slipped more than 1%, dropping below $63,000.
Bitcoin briefly rallied above $63,800 following weaker-than-expected U.S. jobs data, which eased rate-hike expectations and supported risk assets. However, the move faded, with prices pulling back to around $62,900.
The softer labor data offers some relief after June’s ETF outflows, but a single data point is unlikely to shift the broader trend. The July 14 CPI report will be the next key catalyst for determining whether the recovery can extend or stall.
