Retail Investors Are Dumping Nvidia & AI Stocks As Elon Selflessly Allows Us To Buy SpaceX

Move over, AI. There’s a new billionaire-backed hype train pulling into the station, and it’s headed straight for Mars.

For the past year, retail investors have treated AI and semiconductor stocks like a money-printing machine. But according to a new report from Bloomberg, the do-it-yourself trading crowd is suddenly dumping their beloved tech darlings.

Why? Because they are frantically hoarding “dry powder” for the upcoming SpaceX initial public offering (IPO).

Nvidia? More like, NV-See-Ya Later, Am I Right??

Data compiled by Vanda Research shows that amateur traders have been net sellers of individual stocks for three consecutive days. That hasn’t happened since the dark days of March 2020. Monday alone saw the biggest retail cash pullout since November 2023.

The hardest hit? Recent AI winners and chipmakers like Micron Technology, Super Micro Computer, and AMD. They’re getting dumped like a high school sweetheart ahead of college move-in week. Micron dropped 4.7%, and Qualcomm shed nearly 7% in a single session as the retail army cashed out to fund their new addiction.

It turns out tech fatigue might finally be setting in, and investors are looking for a shinier object. Enter Elon Musk.

Related: Read more about Elon Musk’s latest market-moving antics here.

Houston, We Have A FOMO Problem

Few companies have ever generated this much pre-IPO euphoria.

Retail traders are desperate for a piece of the rocket company, and who blames them? To make things even wilder, SpaceX is reportedly reserving at least 20% of the offering specifically for individual investors, drawing over $70 billion in retail orders alone. Fidelity even lowered its account threshold to a measly $2,000 just so everyday investors can get a taste.

Whether ditching profitable chip companies for a rocket business that hasn’t actually turned a profit yet is a galaxy-brain move remains to be seen. Wall Street analysts are already warning that this massive capital reshuffle is going to spark serious market volatility through the rest of the year.

But hey, who cares about short-term portfolio indigestion when you have a chance to literally buy the moon? To infinity and bankruptcy!

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