AI trade loses steam as infrastructure boom faces reality check

Markets AI trade loses steam as infrastructure boom faces reality check Record earnings, rising competition and concerns over slowing AI spending are forcing investors to reassess one of the market's biggest trades. By James Van Straten | Edited by Stephen Alpher Jul 7, 2026, 2:17 p.m. 1 min read Make preferred on Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Make preferred on DRAM ETF (TradingView) Summary Show Samsung delivered record quarterly profit, yet shares fell nearly 7%, while SK Hynix also declined ahead of its U.S. listing, signaling that expectations for AI chipmakers may have become too optimistic. At the same time, China's Zhipu is pursuing custom AI chips to support its fast-growing open-source models, reinforcing the view that more efficient AI and lower-cost infrastructure could challenge the dominance of US frontier models. The AI trade, which incorporates semiconductors and memory stocks, is showing signs of fatigue as investors reassess whether the extraordinary spending boom on chips and data centers can be sustained. Semiconductor and memory stocks such as Micron Technology (MU) and Sandisk (SNDK) came under heavy pressure on Tuesday, after Samsung Electronics (005930) reported record second-quarter earnings but missed revenue estimates. Shares still fell nearly 7%, extending a broader selloff across AI-linked chipmakers. Concerns are growing that hyperscalers could slow AI infrastructure spending. Meanwhile, rival SK Hynix is down 25% from its all-time high ahead of its U.S. listing this week, a deal that is also drawing investor capital away from existing chip stocks. Adding to the changing narrative, China's Zhipu AI, one of the country's leading artificial intelligence startups, is exploring a custom AI chip as demand for its open-source GLM models surges, highlighting the rise of lower-cost AI ecosystems built around domestic hardware rather than cutting-edge US chips. The shift comes just weeks after SpaceX's blockbuster IPO and amid elevated valuations across AI-related stocks. Investors are increasingly questioning whether the next phase of AI will require ever more GPUs and high-bandwidth memory, or whether more efficient models will reduce demand for the infrastructure that has powered the AI rally. Over the past year, bitcoin and the broader crypto market have suffered from the AI trade, and if investor enthusiasm for AI continues to fade, crypto bulls could see capital rotate back into digital assets. Latest Crypto News 1 EDX Markets raises $76 million in funding round led by SBI Holdings 11 minutes ago 2 Former Tether investment chief is looking to sell part of his stake in the stablecoin giant: Bloomberg 32 minutes ago 3 Bitcoin, XRP draw Japanese firms as weak yen drives treasury diversification 52 minutes ago 4 Coinbase secures UK authorization to offer traditional investments alongside crypto 2 hours ago 5 Bitcoin's July gains may be fleeting as U.S. demand stays weak 2 hours ago 6 Bitcoin stalls as open interest decline raises questions about rally's staying power 3 hours ago 7 Binance taps into Bitcoin holders’ hunger for yield with new covered call yield play 5 hours ago 8 Bitcoin's recent macro relief faces a challenge from Japanese interest rates 6 hours ago 9 Live markets: Samsung earnings miss sparks uncertainty as bitcoin dips below $64,000 7 hours ago 10 BONK faces $20 million treasury drain after attacker spends $4 million to pass malicious proposal 8 hours ago Latest Research 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 Research 1 hour ago 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. 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. View Full Report More From Markets Bitcoin, XRP draw Japanese firms as weak yen drives treasury diversification Bitcoin stalls as open interest decline raises questions about rally's staying power Binance taps into Bitcoin holders’ hunger for yield with new covered call yield play