Capital is moving away from major tech firms and bitcoin as funds are directed towards semiconductors, memory stocks, and space ventures.
By James Van Straten|Edited by Sheldon Reback Jun 18, 2026, 11:37 a.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on (Shutterstock)SummaryShow- The Magnificent 7 stocks and bitcoin are experiencing a downturn, with Microsoft down 33% from its peak, Meta down 28%, and Tesla down 20%. Bitcoin (BTC) remains approximately 50% below its October high.
- Investors are increasingly investing in semiconductors, memory stocks, and opportunities linked to SpaceX as doubts rise regarding the viability of massive AI expenditures by hyperscalers.
The growth narrative surrounding the Magnificent 7, driven by AI advancements, is facing challenges.
These top-performing stocks over the last decade are now under scrutiny as investors reevaluate the substantial expenses associated with the AI race and shift their focus to sectors that show better momentum.
Currently, Microsoft (MSFT) has dropped 33% from its recent highs, while Meta (META) has decreased by 28%. Other notable declines include Tesla (TSLA), Amazon (AMZN), Nvidia (NVDA), and Alphabet (GOOGL), all trading over 10% lower, with Apple (AAPL) being the least affected at -7%.
The trend is evident in the cryptocurrency market as well, where bitcoin BTC$63,901.83 has seen a 50% fall from its peak in October.
However, this does not indicate a complete withdrawal from AI investment. Instead, capital is being redirected towards the companies that create the infrastructure that supports this growth. Key beneficiaries include chip manufacturers and memory-chip producers, as well as real estate firms that provide space for the data centers necessary for AI operations.
The most significant gains have been observed in memory and semiconductor stocks. For instance, memory-chip manufacturer Sandisk (SNDK) has skyrocketed by around 800% this year, and the Global X Artificial Intelligence & Technology ETF, which focuses on memory companies (DRAM), has increased by roughly 140%. Additionally, Micron Technology (MU) has risen about 230% this year, while the VanEck Semiconductor ETF (SMH) has gained 67%.
This shift highlights a growing preference for companies that supply the essential infrastructure for the AI boom rather than the hyperscalers that are funding it.
Moreover, SpaceX (SPCX), the space exploration firm founded by Elon Musk, is also attracting capital as it expands into AI. Recently, the company secured $75 billion in the largest initial public offering in history.
While AI remains the leading investment theme in the market, the financial requirements to sustain its growth are escalating. The parent company of Google, Alphabet (GOOGL), Amazon, Microsoft, and Meta are projected to collectively invest $725 billion on capital expenditures this year, marking a 77% increase from last year's record spending.
Free cash flow is increasingly insufficient to support these ambitions. In fact, Alphabet, Amazon, and Meta together borrowed around $93 billion last year, which accounted for about 6% of the total corporate bond issuance.
Additionally, another critical source of support is dwindling. Share buybacks have decreased by 33% to $132 billion in 2025, which has weakened a major demand driver for these stocks.
Today’s narrative is not solely about concerns regarding AI expenditures. It’s also about the shift in capital. Investors are moving away from the Magnificent 7 and cryptocurrency, both of which have been among the top performers in recent years, and reallocating funds towards semiconductors, memory, and opportunities associated with SpaceX, which are increasingly considered the next beneficiaries of the AI investment cycle.
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CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
By CoinDesk ResearchJun 15, 2026In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
Why it matters:
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
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