Individual investors are rotating out of high-flying AI chip stocks, dumping positions in Micron, Advanced Micro Devices, and Marvell. The shift came as traders sought exposure to SpaceX, the private space company led by Elon Musk, according to CNBC.
The move marks a notable change in retail sentiment, which had heavily favored AI-related names during the recent tech rally. Now, the allure of SpaceX's private market access and space exploration narrative appears to be drawing capital away from semiconductor giants.
No specific dollar figures or percentage changes were reported for the selloff. CNBC characterized the trading pattern as retail investors chasing a "shiny new toy," though exact volumes or price impacts were not detailed in the report.
The rotation suggests retail traders are betting on SpaceX's growth potential over the near-term returns of AI chipmakers. However, it remains unclear whether this trend will persist or if AI stocks will regain favor as new catalysts emerge.
Some analysts warn that retail momentum chasing into private markets carries liquidity risks, as SpaceX shares trade on secondary markets with limited transparency.