AI Chip Stocks Crack, Bitcoin Claws Back as Robinhood's Crypto Revenue Cools

Wall Street closed the week under pressure as traders repriced AI spending and tech valuations. One major index dropped 2.86% Friday, another slipped 1.82%, and semiconductors took the worst of it: Nvidia fell about 4.2%, AMD shed 10.9% and Intel cratered 28.6%. The selling made one thing clear — chip stocks live and die by capital spending expectations right now.

Crypto wasn't immune. Bitcoin sank toward $76,000 following a security incident at Binance, then clawed its way back to around $78,000 over the weekend. Another large-cap token slid below $2,300. The damage showed up in flows too: U.S. spot Bitcoin ETFs logged roughly $203 million in weekly net outflows, including $643 million pulled on Friday alone — a signal that institutional demand is still shaky.

Robinhood's latest quarter told a different story about where trading dollars are going. Crypto transaction revenue dropped 55% year over year to $120 million, while options revenue climbed 31% to $399 million. Prediction market revenue hit $173 million, growing more than sixfold. The brokerage's mix is shifting fast, away from spot crypto and toward derivatives and event betting.

Next up, the AI trade gets its real test. Investors are watching Nvidia, AMD, Micron, Broadcom and TSMC for clues on demand for GPUs, advanced memory, networking gear and chip manufacturing. Crypto miners are angling into the same lane, chasing AI and high-performance computing data center capacity — which puts them in direct competition for power and compute.

Politics could scramble the board too. The November 3 U.S. midterm elections may shape expectations around tech regulation, financial markets and digital asset legislation, with crypto-exposed names seen as especially sensitive to anything touching stablecoins and prediction markets.

Coinbase keeps widening its product ecosystem while Robinhood bundles stocks, options, crypto and prediction markets into one app. For both, future results may hinge less on Bitcoin's price and more on whether customers actually adopt the newer products — and whether those businesses can turn a sustainable profit.