Capital rotation from semiconductor stocks to crypto underway as memory stocks lose momentum and Bitcoin rebounds.
Macro & Markets ·
Memory and semiconductor stocks that led markets through the first half of 2026 are showing signs of fatigue, potentially opening space for capital to rotate back into crypto. The Roundhill Memory ETF (DRAM) has fallen roughly 25% from its June peak, while the VanEck Semiconductor ETF (SMH) is down around 12%. Bitcoin, which dipped below $58,000 on July 1, has rebounded above $61,000 as the momentum shift accelerated following reports that Meta Platforms is establishing a unit to sell excess GPU computing capacity.
The pullback marks a reversal after months of investor focus on AI infrastructure. Standout gainers like Sandisk (up more than 530% in 2026) and Micron (up over 230%) had dominated investor appetite as the industry sought exposure to AI chip demand, while crypto assets including BlackRock's iShares Bitcoin Trust fell 30% in line with the broader market. The selling pressure also extended to former Bitcoin miners now offering GPU hosting services, with companies like IREN, Cipher Digital, and TerraWulf each down at least 20% from their highs.
Whether this represents a sustained rebalancing or a temporary correction remains unclear. The recent pullback in semiconductor leaders and Bitcoin's rebound could signal the early stages of risk reallocation toward digital assets, but it is too early to characterize the move as a confirmed rotation away from AI infrastructure stocks.