Midas Market Pulse, AI Investing & Trends for 7th of August 2025

🔻 AMD, Super Micro Tumble as AI Hype Cooldown Meets Enterprise Reality

Another turbulent day in AI markets as semiconductor giants struggle under earnings pressure, while venture capital fuels a fresh AI software surge. Meanwhile, on chain speculators chase parabolic returns as AI tokens like OZAK and Ruvi dominate retail chatter. August 7th marks a reset on overblown expectations, and a reminder that “AI powered” isn’t always a moat.

📈 AI Market Movers & Trends

Despite the prevailing AI bullishness of 2025, today’s tape was unforgiving for two of the sector's most widely held names, AMD and Super Micro Computer. Shares in both dropped sharply following earnings that fell short of market expectations. AMD plummeted more than 8% after reporting a 30% drop in quarterly earnings, largely due to cooling demand from Chinese data center clients following recent government procurement headwinds. Super Micro, a darling of the AI hardware wave, sank in tandem, down 9%, after torching expectations on enterprise AI server growth.

This marks a conspicuous divergence from the recent AI trade narrative, where chipmakers like AMD were viewed as inevitabilities in the infrastructure layer of the AI economy. The Street is waking up to a more complex picture, not every AI hardware player benefits uniformly from hype cycles. As Barron’s put it today, “AMD isn’t the next Nvidia. At least, not yet.”

Interestingly, this earnings reckoning contrasts sharply with Broadcom’s trajectory. In a note from Seeking Alpha, analysts highlighted how Broadcom’s pivot toward custom AI silicon and structured licensing deals has transformed its semiconductor division into a recurring revenue machine. While AMD is still tethered to commodity GPU cycles and hyperscaler mood swings, Broadcom is playing the slow, compounding game.

We’re now entering the next phase of AI, from blind upswing into selection. The market is beginning to draw lines between enablers and winners. And that broader sentiment shift is likely to ripple into how capital flows, as we explore below.

💸 Funding Watch

If big cap hardware is entering a trust re evaluation, private AI software companies are showing no sign of cooling down. Today, three AI startups each secured meaningful venture rounds, underscoring the fundamentally different risk appetite on the venture side.

Leading the day’s activity was Clay, an AI driven sales automation platform, which closed a $100 million Series C at a $3.1 billion valuation. That puts Clay more than halfway to unicorn decacorn territory, supported by what insiders suggest is sticky ARR from enterprise customers. Meanwhile, financial automation startup Rillet announced a $70 million Series B, led by Andreessen Horowitz and Iconiq. The company, now valued at approximately $500 million, is positioning itself as an “AI native ERP”, a bold claim, but one that clearly resonated with investors looking to back full stack reinventions of legacy systems.

Also raising eyebrows is Tavily, which secured $20 million to build what it calls “the Google of AI agents.” That kind of pitch walks a fine line between ambition and overpromise, but the funding suggests investors are still willing to back teams chasing the meta layer of AI interaction.

One common thread? All these ventures live in highly vertical domains, accounting, sales, agent interfaces, suggesting VCs are pivoting away from generalist AI bets in favor of companies with tight end user fit and quantifiable returns. As Peter Walker notes in his recent State of VC breakdown, “The gold rush days of foundational AI are drying up. Now it’s about the ROI story.”

🪙 Crypto Moves

The AI crypto sector is once again proving it plays by its own rules, with speculators charting massive paper gains even as real economy AI equities stumble.

Leading today’s meme fueled rally is OZAK AI, a self described “AI product ecosystem” token that has now raised north of $1.5 million in its presale amid viral speculation it could go from “$400 to $40,000” according to retail forums. While the technical whitepaper is light and the use case ambiguous, retail traders are clearly treating it as a flip play, not an infrastructure bet. OZAK’s pitch, blending pseudo ChatGPT features with DeFi incentives, is less LLM breakthrough, more influence economy package.

Also grabbing attention is Ruvi AI, which hit $2.7 million in contributions following a confirmed CoinMarketCap listing. Comparisons to Shiba Inu have surfaced thanks to its low float and gamified UX, though whether Ruvi avoids the post listing death spiral that plagues many such tokens remains to be seen.

Meanwhile, central exchanges continue to stoke the flame. INFINIT (IN), a DeFi platform claiming AI enhanced financial modeling, was listed on KuCoin, while Sarah, a token linked to an AI led NFT curation engine, launched via Biconomy. Neither token has drawn institutional money, but both showcase the growing appetite among retail buyers for anything claiming “AI powered” differentiation.

These AI tokens are largely divorced from today’s macro AI disappointment in the public markets, the speculative crowd is just playing a different game. But there’s a thematic overlap worth watching, as venture funded startups like Tavily push toward real time agents and crypto teams experiment with token gated LLMs, the gap between AI speculation and deployment continues to blur.

Whether that leads to cross ecosystem breakthroughs, or mutual disillusionment, will depend on how much patience the capital still has.

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