AI stocks are attracting most of the market’s attention, with the Nasdaq and S&P 500 hitting record highs as chipmakers like Nvidia and AMD continue to benefit from strong AI demand.
AI stocks have been running hot on the markets, and crypto has mostly watched from the sidelines. That gap has widened in recent weeks.
On May 6, the S&P 500 climbed 1.46% to 7,365.09 and the Nasdaq rose 2.03% to 25,838.94. Both closed at records. Strong AI-linked earnings helped drive that move. So did optimism. A lot of it, honestly.
AMD stood out. The chipmaker jumped nearly 19% after a bullish forecast. Nvidia moved too, gaining about 5.7%. No surprise there, maybe. It has been one of the market’s main AI barometers for months.
The pace was not limited to those names. The PHLX semiconductor index rose 4.5% on May 6 alone. That took its 2026 gain to 62%. Huge move. And it says plenty about where the money has been going.
On May 6 alone, the PHLX semiconductor index jumped 4.5%, bringing its 2026 gain to 62%. Other chip names also surged – Intel +4.5% and Hut 8 +35% on AI-related news.
Overall, analysts say AI stock momentum has become the dominant theme: one report notes that a broad tech earnings season has been “driven by AI-related companies,” fueling the rally.
Many of the day’s gains rested on hope for further expansion of AI. For instance, Corning rallied on news of a partnership with Nvidia on AI data center products.
Financial firms are bullish on chipmakers’ outlook: Loop Capital and others have raised targets on Nvidia, projecting continued demand for AI chips.
As Reuters puts it, US stocks “have recovered on expectations” that AI-driven growth will offset trade and inflation worries. In short, the AI stock sector has been outperforming other parts of the market.
By contrast, the crypto market has lagged during the AI surge. Major digital tokens have been flat or declining while tech equities hit highs.
Major digital tokens have gone nowhere or slipped, while tech stocks kept climbing. Bitcoin has taken the harder hit. It is down about a third in 2026. And that is the neat version.
The fuller picture is messier. After surging past $125,000 late last year, it now trades near $63,000. That puts it roughly 40% below its early-2025 peak. A sharp reversal.
Ethereum has fared similarly: it is down about 29% this year. In fact, since mid-May, Bitcoin has dropped over 10% while the Nasdaq gained about 2.7%.
Investors point to a clear rotation of funds out of crypto and into AI-driven stocks. As one strategist observes, "Speculative money is pouring into artificial intelligence stocks, taking away some of Bitcoin's mojo."
The outperformance of AI shares is evident: U.S. semiconductor stocks jumped roughly 170% over the past year, even as Bitcoin fell about 40%.
Look at where the money is going. Bitcoin ETFs have already lost about $3.1 billion this year. Not a small number.
At the same time, investors have been piling into semiconductor funds. Billions have flowed the other way. The contrast is hard to miss.
As Reuters reports, “AI now dominates stock markets” with cash flowing into hyperscale data centers and chipmakers, whereas Bitcoin is no longer the market’s primary focus.
Many large holders have actually reduced crypto exposure: for example, the biggest corporate Bitcoin holder (MicroStrategy’s strategy) sold some coins in June for the first time since 2022.
Investors will be watching closely to see if and when the crypto market can rally on its own catalysts or if the AI stocks bull run pulls in more capital from all corners of the market.
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