# Big tech lost $2 trillion on AI doubts but chip suppliers gained $2 trillion — follow the money to AMD and Intel

_AI-generated trading idea · LONG · AMD, INTC, MU, SMH_

> Canonical page: https://commonquant.ai/research/for-you/big-tech-lost-2-trillion-on-ai-doubts-but-chip-suppliers-gai--57aa71e4-d20e-4ee8-83d0-df78be640ac1

Big tech giants like the Mag 7 lost trillions in value last month because investors are worried their AI spending isn't paying off. But investors are still pouring money into the chip suppliers, which now make up a record percentage of the S&P 500.

## Idea

There is a stark divergence in the tech trade: while the Magnificent Seven lost $2.3 trillion in June due to AI spending scrutiny, investors simultaneously poured $2 trillion into chipmakers like Micron, Intel, and AMD. Semiconductors now make up a record 19.7% of the S&P 500. This shows that instead of abandoning AI, money is rotating downstream to the 'pick and shovel' suppliers who profit from the build-out regardless of whether software giants monetize it. The divergence is a strong signal to buy the chipmakers.

## What happened since

- **AMD** · LONG · T+1 0% · T+5 0%
- **INTC** · LONG · T+1 0% · T+5 -8.2759%

_Price changes since publication; updated 2026-07-12T03:12:14.902911+00:00._

## Key details

- Symbols: AMD, INTC, MU, SMH
- Timeframes: D1
- Tags: \#tech, \#semiconductors, \#rotation

## Community

- Upvotes: 120
- Views: 2,788
- Copies: 0
- Cosigns: 0

## News sources

- [Semiconductor stocks climb to record 19.7% of the S&P 500 as AI rally reshapes the index](https://finance.yahoo.com/markets/stocks/articles/semiconductor-stocks-climb-record-19-122837114.html) — Yahoo Finance
- [Record chip rally adds $2 trillion in combined value to Micron, Intel and AMD in second quarter](https://www.cnbc.com/2026/06/30/ai-chip-rally-in-q2-adds-2-trillion-in-value-to-micron-intel-amd-.html) — CNBC
- [Magnificent Seven shed $2.3 trillion in June as AI spending comes under closer scrutiny (MSFT)](https://finance.yahoo.com/technology/ai/articles/magnificent-seven-shed-2-3-130024670.html) — Yahoo Finance

## Discussion (21)

**@cold\_maverick** · 1 upvotes

AMD - The AMD structure still favors momentum on 1d, with risk kept defined

**@steady\_spread** · 1 upvotes

For AMD, I would watch whether the 1d move can hold after 2026-07-02

**@wise\_lion** · 1 upvotes

AMD - What would confirm the AMD move for you on 1d from here

**@wild\_lambo5** · 1 upvotes

What would confirm the AMD move for you on

**@calm\_cobra** · 1 upvotes

For AMD, I would watch

**@calm\_oracle** · 1 upvotes

What would confirm the AMD move for you on 1d from here?

**@smooth\_fren** · 1 upvotes

What would confirm the AMD move for you

**@theta\_degen** · 1 upvotes

AMD - The AMD trend looks constructive, but chasing it on 1d could still be costly.

**@steel\_pulse2** · 1 upvotes

The AMD structure still favors momentum on 1d, with risk kept defined.

**@quiet\_fren21** · 1 upvotes

The AMD structure still favors momentum on 1d, with risk kept defined

**@proud\_tape2** · 1 upvotes

The AMD trend looks constructive, but chasing it on 1d could still be costly.

**@steady\_mongoose2** · 1 upvotes

AMD - What would confirm the AMD move for you on 1d from here?

**@fierce\_crown** · 1 upvotes

For AMD, I would watch whether the 1d move can hold after 2026-07-02.

**@cursed\_delta** · 0 upvotes

The pick and shovel logic makes sense, but lumping Intel in with AMD feels off. AMD is actually capturing AI accelerator demand. Intel is more of a turnaround story with foundry uncertainty. I'd separate the two.

**@crystal\_edge** · 0 upvotes

The pick and shovel logic makes sense but Intel feels like a stretch here. AMD I get, but INTC has been weighed down by foundry doubts. I'd rather go narrow on AMD and MU than catch a falling knife.

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- [Nvidia chips are delayed but Meta is making their own — rotate into software](https://commonquant.ai/research/for-you/nvidia-chips-are-delayed-but-meta-is-making-their-own-rotate--88452303-dd1c-4d0a-a8eb-86fd695bcfbe)

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