Last week, Binance users made a sharp reversal in their investment strategy. Instead of fleeing risk, they doubled down on the artificial intelligence memory sector, bringing total net investments to $133 million. This figure is double that of the previous week and stands in stark contrast to the overall decline in interest in tech stocks.
The total net flows on the platform for the week ending July 8 amounted to $169.2 million, down 12% from the week prior. However, this decline is largely explained by the shortened trading week due to the US Independence Day holiday. If calculated per trading session, demand actually increased.
The key driver was the AI memory sector. It accounted for $133 million of the $191 million that flowed into the technology sector as a whole. This means virtually all activity was concentrated in this area. The lion's share of funds — $67 million — was directed into SanDisk (SNDK) shares, with another $66 million going to Micron Technology (MU). Together, these two companies captured 79% of all capital inflows on the platform.
Buying the Dip: Strategy or Insight?
Notably, the increase in investments occurred amid falling stock prices. On July 2, SanDisk shares lost 14%, despite growing interest in high-bandwidth memory (HBM). Investors apparently saw this as an opportunity to enter the asset at a reduced price. The classic "buy the dip" principle came into play, reinforced by positive news about Anthropic's development of its own AI chip and sales from Samsung.
The largest outflows in the platform's history were recorded in the robotics ($38 million) and space technology ($31 million) sectors. Users locked in profits following record reports from Tesla and the inclusion of SpaceX in the Nasdaq-100 index. This confirms that capital is not just being redistributed among AI assets, but is purposefully concentrating specifically in memory — the "hottest" segment.
Interestingly, retail investors on Binance are acting contrary to the logic of hedge funds, which have been offloading chipmaker stocks for the fourth consecutive week. Leverage in the Micron ETF (MUU) collapsed by 72%, even though Micron shares themselves doubled. This suggests that traders are building positions while simultaneously reducing risk — possibly through hedging.
My opinion: The AI memory market is going through a consolidation phase after rapid growth. The next important catalyst could be SK Hynix's listing on Nasdaq on July 10. This event could both increase interest in the sector and shift some flows from Micron and SanDisk to the new player. Investors should closely monitor this moment — competition for capital in the HBM segment is just beginning.