In the week ending July 8, users of the Binance platform sharply increased their positions in stocks of memory manufacturers for artificial intelligence. Net inflows into this sector doubled, reaching $133 million, indicating a clear disconnect between market dynamics and retail investor actions.
Total net capital inflows on the platform for this period amounted to $169.2 million, down 12% from the previous week. However, this decline is explained by the shortened trading week due to the Independence Day holiday in the United States. When recalculated for trading sessions, demand actually showed growth.
Focus on the Memory Sector
The greatest investor interest was in SanDisk (SNDK) and Micron Technology (MU) stocks, which accounted for 79% of all net inflows in the memory segment. SanDisk attracted $67 million, and Micron — $66 million. Notably, this occurred against a backdrop of falling stock prices. For instance, on July 2, SanDisk shares lost 14% of their value, despite growing interest in high-bandwidth memory (HBM).
Analysts attribute this dissonance to the news environment. Reports about Anthropic developing its own AI chip and profit-taking by Samsung at the end of the day triggered a sell-off, which retail investors perceived as an entry opportunity.
It is important to note that the flow of funds came at the expense of AI-related sectors. Record outflows in the platform's history were recorded in the robotics and space technology sectors — $38 million and $31 million, respectively. Investors took profits on event leaders: Tesla (after record deliveries) and SpaceX (amid its inclusion in the Nasdaq-100 index).
Retail Investor Strategy vs. Hedge Funds
Significantly, platform users are acting contrary to institutional players. Hedge funds have been shedding chipmaker stocks for the fourth consecutive week. Retail investors, on the other hand, are increasing positions while simultaneously reducing risk. For example, leverage in the Micron ETF (MUU) collapsed by 72%, even though Micron spot shares doubled. This suggests that traders are building long positions but doing so very cautiously.
The key event for the sector will be SK Hynix's listing on Nasdaq on July 10. This move could either boost investor interest in memory manufacturer stocks or redistribute capital flows from Micron and SanDisk to the new competitor.
My opinion: Retail investors on Binance are demonstrating a classic "buy the dip" in one of the hottest market sectors. However, concentration in two stocks and ignoring signals from institutions is a risky strategy. The SK Hynix listing could be a moment of truth: either it confirms faith in the long-term trend, or it becomes a trigger for profit-taking.