Semiconductor stocks retreat as Bitcoin rebounds above $61,000
In brief
- Memory and semiconductor stocks, top 2026 equity winners, have pulled back sharply from record highs.
- Roundhill Memory ETF fell 25% from June 22 peak; VanEck Semiconductor ETF dropped 12% from recent highs.
- Bitcoin dipped below $58,000 on July 1, rebounded above $61,000 in early July.
- Former miners IREN, Cipher Digital, and TerraWulf pivoted to GPU hosting and computing services.
- Semiconductor pullback alongside Bitcoin's rebound may signal investor rebalancing toward digital assets.
The AI Trade's Winners—and Their Recent Stumble
The standout equity winners in 2026 have been memory and semiconductor stocks, which are crucial to powering the AI industry. The Roundhill Memory ETF (DRAM) more than doubled in the first half of the year. The VanEck Semiconductor ETF (SMH) climbed 60% in the same period. Individual names like Sandisk (SNDK) surged more than 530% and Micron Technology (MU) climbed more than 230%.
That momentum has stalled. The Roundhill Memory ETF has fallen roughly 25% from its June 22 record high. The VanEck Semiconductor ETF has dropped 12% from its recent peak. The pullback has been swift and visible.
Meanwhile, crypto's flagship asset is stirring. Bitcoin dipped below $58,000 on July 1 and is back trading above $61,000. BlackRock's iShares Bitcoin Trust (IBIT), the largest bitcoin ETF, had dropped 30% in the first half of 2026 as capital flowed elsewhere. That gap is narrowing.
The Pivot in Computing Infrastructure
The semiconductor slowdown doesn't mean AI infrastructure demand is evaporating. It's shifting. Meta Platforms announced a business unit called Meta Compute, which will sell excess GPU computing capacity to third parties. That move opens a new revenue stream from underutilized hardware.
Former bitcoin miners are making a similar bet. IREN, Cipher Digital, and TerraWulf have pivoted their computing resources to provide GPU hosting and high-performance computing services to the AI industry. Yet IREN, Cipher Digital, and TerraWulf have each fallen at least 20% from their all-time highs, suggesting investor appetite for the pivot remains cautious.
Signs of Rebalancing
It's too early to declare a sustained rotation. But the pattern is worth watching. After months of capital flowing into AI infrastructure at the expense of crypto, the recent pullback in semiconductor leaders alongside bitcoin's rebound could signal the start of a rebalance. Whether that momentum holds depends on whether the semiconductor correction deepens or stabilizes—and whether bitcoin can sustain its gains above $61,000.
