Investor sentiment is shifting as record profits, increasing competition, and worries over declining AI investments prompt a reevaluation of a major market trend.
By James Van Straten|Edited by Stephen AlpherUpdated Jul 7, 2026, 2:52 p.m. Published Jul 7, 2026, 2:17 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on DRAM ETF (TradingView)SummaryShow- Despite Samsung achieving record profits in the second quarter, its shares fell by almost 7%, and SK Hynix also saw a decline ahead of its U.S. listing, indicating that optimism surrounding AI chip manufacturers may be waning.
- In parallel, China's Zhipu is developing custom AI chips to enhance its rapidly expanding open-source models, suggesting that more cost-effective AI solutions could potentially challenge the supremacy of U.S. models.
The AI investment landscape, particularly in semiconductors and memory stocks, is exhibiting signs of exhaustion as investors reconsider the sustainability of the recent surge in chip and data center expenditures.
Shares in semiconductor and memory companies like Micron Technology (MU) and Sandisk (SNDK) faced significant declines on Tuesday, following Samsung Electronics (005930) reporting record second-quarter earnings but failing to meet revenue predictions.
As a result, Samsung's stock dropped nearly 7%, contributing to a wider downturn among AI-related chip manufacturers. There are rising concerns that major tech firms, known as hyperscalers, might reduce their spending on AI infrastructure.
Additionally, SK Hynix's stock has decreased by 25% from its peak ahead of its upcoming U.S. listing, diverting investor interest from established chip stocks. This downturn follows an impressive surge in AI infrastructure stocks this year, with Sandisk soaring over 525%, Micron up more than 120%, and SK Hynix increasing approximately 225% in 2026.
Compounding this shift, Zhipu AI, a leading player in China's AI sector, is looking into creating a custom AI chip to meet the growing demand for its open-source GLM models. This highlights the emergence of lower-cost AI ecosystems that rely on domestic hardware instead of advanced U.S. chips.
This transition occurs shortly after SpaceX's significant IPO and amidst high valuations for AI-related stocks. Investors are increasingly questioning whether future AI advancements will necessitate a continuous increase in GPUs and high-bandwidth memory, or if more efficient models will diminish the need for the infrastructure that fueled the AI surge.
Over the past year, both bitcoin and the wider cryptocurrency market have been negatively impacted by the AI trade, and should enthusiasm for AI diminish further, investors may redirect their capital back into digital assets.
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SpaceX IPO Drives Tokenized Equity Volumes to Record as Stablecoin Market Cap Falls
SpaceX IPO Drives Tokenized Equity Volumes to Record as Stablecoin Market Cap Falls
Stablecoin market cap fell to $312B in June, its largest monthly drop since TerraUSD, while tokenized equity volumes surged 145% to a record $3.86B.
By CoinDesk Research2 hours agoStablecoin market cap fell to $312B in June, its largest monthly drop since TerraUSD, while tokenized equity volumes surged 145% to a record $3.86B.
Why it matters:
Stablecoin market cap fell to $312B in June, its largest monthly drop since TerraUSD, while tokenized equity volumes surged 145% to a record $3.86B.
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