Tech Momentum Weakens as Bitcoin Reclaims Strength in Market Shift

After dominating markets through 2026, AI-linked memory and semiconductor stocks are starting to lose momentum, fueling questions over whether capital is beginning to rotate back into bitcoin.

Chipmakers and memory firms tied to the AI boom have been the year’s strongest equity performers, drawing heavy inflows as investors piled into the dominant theme while crypto lagged behind.

That leadership now appears to be softening as semiconductor stocks cool and bitcoin rebounds from levels near a two-year low.

ETF performance highlights the divergence. The Roundhill Memory ETF (DRAM) more than doubled in the first half of the year, while the VanEck Semiconductor ETF (SMH) rose roughly 60%, both driven by demand for AI computing infrastructure. In contrast, BlackRock’s iShares Bitcoin Trust (IBIT), the largest bitcoin ETF, has fallen about 30%, tracking bitcoin’s broader decline.

The AI-driven rally has been led by names such as 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 workloads.

More recently, signs of fatigue have emerged across the trade.

The Roundhill Memory ETF has retreated around 25% from its June 22 peak, while the VanEck Semiconductor ETF is down roughly 12%. Bitcoin, meanwhile, briefly slipped below $58,000 on July 1 before recovering above $61,000.

Selling pressure intensified after reports that Meta Platforms (META) is launching a “Meta Compute” unit to monetize excess GPU capacity, raising concerns about future demand tightness in AI infrastructure.

The move hit “neocloud” providers particularly 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 remains too early to confirm a structural rotation, the simultaneous weakness in semiconductor leaders and rebound in bitcoin may be an early sign that investors are starting to rebalance exposure between AI infrastructure and digital assets.