Retail investors have trimmed holdings in chipmakers like Micron and AI names, freeing cash for the imminent SpaceX IPO. Vanda Research data shows three straight days of net selling, the most since March 2020, as traders shift focus from high‑growth tech to the rocket firm.

The shift coincides with SpaceX reserving up to 30% of its offering for individual investors, a move that nudges more amateurs into the frenzy. Analysts note the sell‑off could amplify volatility for the rest of the year, as household equity exposure tops 35% of total assets.

Wells Fargo’s Douglas Beath warns that retail exits may trigger short‑term market wobble, yet he sees no lasting top‑pull. The trend reflects a broader pullback from AI hype, with investors eyeing high‑barrier IPOs like SpaceX, Anthropic, and OpenAI.

In sum, retail flows are reshaping the tech landscape, and the SpaceX debut may become the next catalyst for market swings.