Source: The Wall Street Journal (paywall)
Retail investors are rotating out of the mega-cap tech stocks that dominated 2023-2024 and into semiconductor companies like SK Hynix and Marvell that benefit directly from AI infrastructure buildout. The shift matters because valuations in Apple, Microsoft, and Nvidia have compressed gains, and unsophisticated capital is chasing better risk-reward elsewhere. Five of the Magnificent Seven stocks are already underwater year-to-date, suggesting the FOMO cycle has already peaked for household traders, while the infrastructure layer (memory, processing chips) still looks nascent enough to chase.