Investors rotate from tech giants and crypto to AI

Investors are shifting capital away from the 'Magnificent 7' tech stocks and Bitcoin, redirecting funds towards semiconductor, memory, and SpaceX-related opportunities. This rotation is driven by concerns over the escalating costs and sustainability of massive AI spending by hyperscalers. While the AI investment theme remains strong, the focus is moving to companies providing the underlying infrastructure, such as chipmakers and data center real estate. Major tech firms are facing increased capital expenditure and borrowing, while share repurchases are declining, signaling a potential slowdown for the largest tech players.