Morgan Stanley and JPMorgan are split on semiconductor stocks as the AI trade evolves.
Morgan Stanley warned that U.S. equities could struggle to reach new highs as investors rotate out of chip stocks and into hyperscalers like Microsoft, Amazon, and Meta. The bank said momentum in semiconductors is fading and kept its S&P 500 year-end target at 8,000.
JPMorgan, however, sees the recent pullback in chipmakers as a buying opportunity, arguing the AI-driven cycle remains intact. It expects constrained supply through 2028 and continues to favor semiconductors over hyperscalers.
Both semiconductor and hyperscaler indexes have retreated from recent peaks as investors reassess valuations and AI expectations. Some of that rotation may have supported crypto, with bitcoin rebounding nearly 10% last week from around $58,000.
After approaching $64,000 over the weekend, bitcoin pulled back to about $61,500 early Monday.
On the corporate side, BitMine (BMNR) bought 42,197 ETH for roughly $74 million last week, bringing its holdings to about 5.74 million ETH, or 4.8% of total supply. Ether slipped 1.5% over the past 24 hours to $1,740.
Anthropic signed a 20-year deal with TeraWulf (WULF) for a 400-megawatt AI data center in Kentucky, expected to come online in the second half of 2027. The agreement could generate around $19 billion in revenue, sending WULF shares up 17% as the company pivots from bitcoin mining to AI infrastructure.
Meanwhile, Strategy (MSTR) sold 3,588 BTC worth $216 million last week, a sharp increase from earlier sales. The move weighed on bitcoin, pushing it down about $1,000 to $61,900.
SK Hynix is preparing for a major 2026 IPO, with Nasdaq trading expected to begin July 10. The company is targeting a reference price of $158.14, implying a valuation near $1.16 trillion, with proceeds earmarked for capital investment and advanced chip equipment. Its shares in Korea have surged 260% this year on strong AI demand.
Capital flows into AI leaders and large offerings may continue to draw liquidity away from risk assets like bitcoin, which is still down roughly 50% from its October peak.
Nine months after hitting an all-time high near $126,000, bitcoin now trades around $62,500, marking a roughly 50% correction after dipping as low as $57,800. If the historical four-year cycle holds, a potential bottom may still be months away, possibly around October.
Among altcoins, LIT—the token of decentralized perpetuals platform Lighter—jumped 13% in 24 hours to $2.50, extending gains to 31% since a June 30 tokenomics update that introduced token burns and revised staking rewards targeting a 6% yield.
In equities, pre-market trading showed a rebound in semiconductors, memory stocks, and “neo cloud” names. SanDisk and Micron rose about 3%, while IREN and Cipher Digital gained roughly 4% as investors bought the dip.
The price action highlights ongoing rotation between AI equities and crypto assets. As funds moved back into semiconductor and AI names, bitcoin slipped more than 1%, falling below $63,000.
Bitcoin briefly climbed above $63,800 after weaker-than-expected U.S. jobs data eased rate pressure, but the rally faded, with prices retreating to around $62,900.
While softer labor data offers some relief after June’s ETF outflows, a single data point is unlikely to shift the broader trend. The July 14 CPI report is the next key catalyst for determining whether the recovery can extend or stall.
