Investors on Binance have doubled their investments in AI chips amid the market downturn.
Last week, users of the Binance platform demonstrated a clear example of counter-cyclical behavior by doubling their investments in stocks of memory manufacturers for artificial intelligence. The total net investment in this sector reached $133 million, a significant signal against the backdrop of an overall decline in market activity.
Memory as the New Hype
The total net fund flows for the week ending July 8 amounted to $169.2 million, 12% lower than the previous week's figures. However, this figure does not reflect the true dynamics: due to the Independence Day holiday in the US, the trading week was shortened to four days. Calculated per trading session, demand actually increased.
The key driver was the technology sector, which attracted $191 million — 113% of the total weekly result. Within it, memory manufacturers dominated. SanDisk (SNDK) shares accounted for $67 million, and Micron Technology (MU) for $66 million. Together, these two companies collected 79% of all net investments in the sector.
Notably, the surge in interest coincided with a drop in stock prices. On July 2, SNDK shares lost 14% amid news that the company Anthropic is developing its own AI chip, as well as after massive sell-offs by Samsung. Investors perceived this as an entry opportunity rather than a reason for panic.
Where the Money Came From
The fund flow occurred at the expense of related sectors. Record outflows in the platform's history were recorded in the robotics ($38 million) and space technology ($31 million) sectors. Users locked in profits on event leaders: Tesla — after record deliveries, SpaceX — amid its inclusion in the Nasdaq-100 index.
This indicates not a redistribution among AI assets, but a clear concentration in the memory sector. Investors are acting like analysts, not hedge funds. The latter have been offloading chipmaker stocks for the fourth consecutive week. Leverage in the Micron ETF (MUU) fell by 72%, although Micron shares themselves doubled on the spot market. Traders are increasing positions while simultaneously reducing risk.
My expert conclusion: We are observing a classic "buy the panic" pattern. Binance investors, unlike institutions, see an opportunity in the current correction, not a threat. The next catalyst could be SK Hynix's listing on Nasdaq on July 10 — this event could both increase interest in the sector and shift flows from Micron and SanDisk to the competitor.