Retail traders are dumping longtime AI favorites including Micron, Advanced Micro Devices, and Marvell in favor of SpaceX, according to CNBC. The rotation marks a sharp departure from the semiconductor-heavy bets that dominated earlier AI rallies, as individual investors chase new opportunities in space and other sectors.
A parallel shift is visible in institutional trading. Josh Brown noted on CNBC that a new AI trade is emerging around "AI customers," moving beyond the chip stocks that led the initial wave. Meanwhile, Bank of America double-upgraded a chipmaker, arguing that a growing market for CPUs will benefit the firm, which has surged more than 60% since its first-quarter earnings report.
The moves suggest the AI trade is broadening beyond infrastructure plays. While retail money flows toward SpaceX, analysts point to downstream beneficiaries—companies that deploy AI rather than build the chips—as the next focal point. The double upgrade from BofA signals conviction in the agentic AI theme, which emphasizes autonomous software agents over raw computing power.
Still, the rotation carries risks. Chasing retail momentum into unproven themes like SpaceX, a private company with limited liquidity, could backfire if fundamentals fail to materialize. Similarly, the "AI customer" trade depends on sustained enterprise adoption, which remains uneven across industries.