Leopold Aschenbrenner's renewed bets on artificial intelligence-related stocks are facing another difficult period after a sharp market sell-off hit several companies associated with AI infrastructure, semiconductor manufacturing and data-centre demand.

According to a market update shared by Coin Bureau on October 17, six of seven stocks and investment instruments highlighted in connection with Aschenbrenner's reported positions have declined since September 8. CoreWeave recorded the steepest reported drop at 37.4%, followed by SK Hynix at 25.8% and SanDisk at 23.8%. The Roundhill Memory ETF (DRAM), Bloom Energy and Intel were also lower, while Advanced Micro Devices (AMD) was the only name in the group showing a gain.

The seven figures in the post imply an equally weighted average decline of approximately 18.3%. That calculation describes the average price movement of the selected names, not the actual performance of Aschenbrenner's portfolio.

The development comes less than three months after his AI-focused hedge fund, Situational Awareness, suffered a severe setback during July's technology-stock sell-off. In September, financial media reported that the fund had returned to the options market with purchases involving several AI-linked companies.

The latest price movements have renewed attention on the risks of trying to capture the long-term growth of artificial intelligence through financial instruments with fixed expiration dates.

The central issue is not whether AI will remain important to the global economy. It is whether a particular investment can withstand the timing, volatility and financing risks that come with betting on that future.

Which AI-Related Stocks Have Fallen the Most?

Coin Bureau's October 17 post highlighted the following price movements since September 8. These figures are reproduced from the social media post and have not been independently verified here against historical market-price data.

Stock or instrument	Reported change
CoreWeave (CRWV)	-37.4%
SK Hynix	-25.8%
SanDisk (SNDK)	-23.8%
Roundhill Memory ETF (DRAM)	-22.9%
Bloom Energy (BE)	-18.1%
Intel (INTC)	-9.4%
Advanced Micro Devices (AMD)	+9.1%

The six declining positions and one gainer produce an arithmetic average of approximately -18.3%.

However, that number should not be interpreted as a verified return for Situational Awareness. The post does not provide a complete account of the fund's positions, the amount invested in each instrument, the options contracts it purchased or whether it subsequently closed or adjusted those trades.

There is also an important distinction within the list: DRAM is the ticker of the Roundhill Memory ETF, rather than the stock symbol of a standalone company.

For readers following the AI investment theme, the figures nevertheless illustrate how different parts of the technology supply chain can experience simultaneous selling pressure.

What Happened to Aschenbrenner's Hedge Fund in July?

To understand the latest developments, it is necessary to look back at the July sell-off.

Situational Awareness, the hedge fund founded by former OpenAI researcher Leopold Aschenbrenner, had built substantial exposure to companies connected to artificial intelligence, computing infrastructure and semiconductor demand.

The fund experienced an extraordinary reversal when several of its investments declined sharply.

According to Reuters, Situational Awareness's portfolio value fell approximately 67% in July 2026, based on an investor letter reviewed by the news agency. The fund subsequently sold most of its publicly traded equity holdings in a transaction involving Ken Griffin's Citadel, according to reporting at the time.

Aschenbrenner acknowledged the severity of the episode in his communication to investors, taking responsibility for the outcome and warning that the fund had come closer to permanent capital impairment than it considered acceptable.

The episode raised questions about concentrated positions, leverage, liquidity and the speed at which losses can compound when several investments move against a portfolio at the same time.

A fund can have a persuasive long-term investment thesis and still face a crisis if its financing arrangements require it to reduce exposure before its investments recover.

That is particularly relevant in the technology sector, where valuations can change rapidly as expectations about future earnings, computing demand and capital spending shift.

Source: Reuters — Situational Awareness portfolio sinks 67% in July after AI stock rout.

Why Did Aschenbrenner Return to Options Trading?

In September, reports indicated that Situational Awareness had resumed buying options tied to AI-related stocks.

Investing.com, citing CNBC reporting, said Aschenbrenner's fund had purchased options worth hundreds of millions of dollars in premium in late August and early September. The reported names included CoreWeave, SK Hynix, SanDisk, AMD and Bloom Energy, along with other instruments linked to the semiconductor sector.

The reporting did not establish whether the fund had raised additional capital for these trades or disclose enough detail to determine the complete structure of its positions.

Options are financial contracts whose value depends on factors such as the underlying asset's price, the strike price, time remaining until expiration, volatility and the premium paid.

A call option can provide exposure to a rising share price without requiring the investor to purchase the shares outright. But the contract has a deadline, and the stock may need to move far enough in the right direction for the trade to become profitable.

If the expected move takes too long, the option can lose value even if the underlying company remains fundamentally attractive.

For a fund that has recently experienced a major drawdown, options can offer a way to obtain defined-risk exposure when purchased without borrowing against the position. However, they can also produce substantial losses if the underlying assets move unfavourably or fail to move quickly enough.

The key detail is that buying options does not automatically mean a trader is using leverage in the same way as a margin-funded stock position. The risks depend on the contract structure, financing arrangements and whether the fund has other positions offsetting the exposure.

Source: Investing.com — Leopold Aschenbrenner resumes options trading activity.

Why Is CoreWeave Under Pressure?

CoreWeave is a major provider of cloud computing infrastructure designed for demanding workloads, including artificial intelligence training and inference.

Its business is closely tied to the growing need for specialised computing capacity. AI developers require access to large numbers of advanced processors, data-centre facilities, networking equipment and reliable power.

That demand creates an opportunity for infrastructure providers, but it also requires significant capital investment.

Building data centres and securing computing equipment can involve substantial upfront spending, while revenue is generated over time through customer contracts. Borrowing costs, customer concentration, infrastructure utilisation and the pace of new investment can therefore affect how investors value the business.

A decline in CoreWeave shares does not, by itself, establish that demand for AI computing has disappeared. It may reflect changing expectations about the company's future cash flows, financing costs, competitive position or the price investors are willing to pay for growth.

For options investors, however, the size and speed of a price decline can be particularly important. A sharp move in the underlying shares can quickly change an option's value, while an extended period of volatility may make it difficult to predict whether a recovery will arrive before expiration.

The broader lesson is that growth in AI computing demand does not guarantee a smooth share-price trajectory for every company supplying that demand.

SK Hynix and SanDisk Highlight the Semiconductor Risk

SK Hynix and SanDisk occupy different parts of the memory and storage market, but both are connected to the growing computing requirements of AI systems.

SK Hynix is a major semiconductor manufacturer known for memory products, including high-bandwidth memory used in advanced computing applications.

SanDisk focuses on flash-memory and data-storage products. Its business is exposed to demand for storage across consumer, enterprise and data-centre markets.

The expansion of AI infrastructure has created opportunities for companies supplying memory and storage. At the same time, semiconductor businesses can be affected by pricing cycles, capital expenditure, inventory changes, competition and expectations about future demand.

Investors may pay high valuations when they expect a prolonged period of strong growth. If expectations become less optimistic, share prices can decline even when the underlying companies continue to operate and sell products.

This is why AI-related semiconductor investments can be volatile. The market is not simply evaluating whether AI adoption will increase; it is also estimating how much profit each company can capture, how long strong demand will last and whether current share prices already reflect those expectations.

The reported declines in SK Hynix and SanDisk illustrate the importance of separating a long-term technology trend from the near-term performance of individual securities.

Why Is the DRAM ETF Included in the List?

The Roundhill Memory ETF trades under the ticker DRAM and provides investors with exposure to companies in the memory sector.

Unlike a single company stock, an exchange-traded fund holds a portfolio of securities according to its investment strategy. Its return depends on the performance and weighting of those underlying holdings, as well as fund expenses and other factors.

The ETF's inclusion in the list is relevant because investors often use sector funds to express a view on a particular part of the AI supply chain without selecting only one company.

However, a sector ETF is not automatically less risky than an individual stock. If its holdings are concentrated in a cyclical industry, the fund may still experience significant declines when that industry sells off.

A decline in DRAM also should not be confused with a fall in the spot price of DRAM memory chips. The ticker refers to an investment product, and its market price reflects the performance of the ETF's holdings.

Bloom Energy and Intel Add to the Broader AI Investment Picture

Bloom Energy and Intel represent different parts of the technology infrastructure story.

Bloom Energy develops fuel-cell-based power systems. Reliable electricity is an increasingly important consideration for data centres, where computing demand and power requirements can be substantial.

Intel is a semiconductor company with businesses spanning processors and related technologies. Its investment outlook depends on product competitiveness, manufacturing execution, capital requirements and demand across the markets it serves.

Their presence in the reported list demonstrates that AI-linked investment exposure is not limited to companies that directly develop AI models.

Investors may also target the companies supplying processors, memory, storage, computing capacity and electricity infrastructure.

This interconnected structure creates opportunities, but it can also spread volatility across multiple industries. If investors become concerned about the profitability of AI spending or the speed at which new infrastructure will generate returns, shares across the supply chain may come under pressure.

The market movements reported by Coin Bureau should not be taken as proof that all AI infrastructure investment is weakening permanently. They show that the selected stocks have experienced different price outcomes over the stated period.

AMD Is the Exception — But One Gainer Does Not Change the Overall Picture

Advanced Micro Devices was the only instrument in the seven-name list with a positive reported return, gaining 9.1% over the period cited by Coin Bureau.

AMD develops processors and other computing products, including hardware used in data centres and AI-related workloads.

Its positive performance contrasts with the declines reported for the other six names. However, a single stock's gain cannot establish that the broader AI trade is recovering or that the fund's reported options positions are profitable.

The actual outcome would depend on whether Situational Awareness held AMD options during the period, the direction and structure of those contracts, the premium paid and any subsequent transactions.

A fund can own an asset that rises in price and still lose money on an option if the contract is poorly structured, purchased at a high premium or held beyond the point at which its value has eroded.

Equally, a falling stock does not necessarily mean that every investor exposed to it has lost money. Put options, short positions and other hedges can produce gains when prices decline.

Without verified position-level information, the reported stock movements cannot reveal the fund's actual profit or loss.

Why Options Can Lose Money Even When the AI Thesis Is Correct

One of the most important lessons from the situation is the difference between being correct about a technology's future and making money from a particular trade.

Imagine an investor believes a semiconductor company will benefit from growing AI demand over the next three years.

The investor buys a call option that expires in three months. The company continues to expand its business, but its share price remains flat for the next two months before beginning to rise.

The investor may still lose money if the share-price increase comes too late or is too small to offset the option's premium and other pricing factors.

This happens because options have an expiration date. As time passes, the value associated with the possibility of a favourable future move can diminish, all else being equal. This effect is commonly called time decay.

Options prices are also influenced by implied volatility. If expectations for future price swings decline, an option can lose value even without a major move in the underlying stock.

The effect is especially important for investors purchasing options ahead of anticipated events or market recoveries. Being right about the direction is not always enough; the magnitude and timing of the move matter too.

For options purchased without borrowing, the maximum loss on a conventional long call or put is generally the premium paid, assuming no additional positions or financing obligations. That premium can nevertheless represent a very large amount of money when a fund buys contracts at scale.

Other options strategies can involve significantly different risks, including losses greater than the initial premium.

Does the Latest Sell-Off Mean the AI Boom Is Over?

Not necessarily.

AI adoption, computing demand and semiconductor investment are long-term themes. A short-term sell-off in AI-related shares does not prove that those trends have ended.

At the same time, long-term growth in a sector does not guarantee that every company will succeed or that every stock purchased at a particular price will generate a positive return.

Investors must distinguish between three separate questions:

1. Technology: Will businesses continue adopting AI?
2. Company fundamentals: Which suppliers can convert that demand into sustainable revenue and profits?
3. Investment valuation: Are the shares priced appropriately for the expected growth and risks?

These questions are related, but they are not interchangeable.

A company can benefit from increasing AI adoption while its shares decline because investors had expected even faster growth. A stock can also rise sharply on improved expectations without an equivalent change in current earnings.

The recent volatility in AI-linked equities reflects the sensitivity of growth-oriented investments to changes in expectations, financing conditions and market positioning.

Broader market reporting has also highlighted concerns about debt-funded AI infrastructure spending and the profitability of major data-centre projects. Those factors can affect sentiment toward companies connected to the same investment cycle.

Related coverage: Reuters — AI-related equity volatility and wider market concerns.

What Investors Should Watch Next

The next stage of the story will depend on market conditions and what can be established about Situational Awareness's actual positions.

Several developments deserve attention:

1. Further disclosures about the fund's trades

The reported options purchases provide a broad picture of the fund's renewed activity, but they do not reveal every position, contract expiry or subsequent adjustment. More complete information would be needed to calculate the fund's actual performance.

2. CoreWeave's financing and business outlook

Investors will continue assessing demand for AI computing alongside capital spending, financing costs, infrastructure commitments and the company's ability to generate cash flow.

3. Semiconductor earnings and demand

Results from memory and processor manufacturers can help investors evaluate whether AI-related demand is translating into sustainable business growth.

4. Volatility in AI-related stocks

Large price swings can affect options valuations and the risk profile of concentrated portfolios. The direction of the next move remains uncertain.

5. Broader market conditions

Interest rates, credit availability, investor appetite for growth stocks and concerns about capital expenditure can all influence valuations across the AI ecosystem.

These factors may help explain future market movements, but none can guarantee a particular stock's performance or the outcome of the fund's options strategy.

The Bigger Lesson: Timing Can Matter as Much as Conviction

Aschenbrenner's experience highlights a challenge that extends beyond one investor or one hedge fund.

The AI industry may offer substantial long-term opportunities, but financial markets do not reward every investor who identifies a promising technology. Returns also depend on entry prices, portfolio concentration, financing arrangements, risk controls and the time horizon of the investment.

The July setback showed how quickly a concentrated portfolio can come under pressure when several related investments decline together. The September options purchases then placed renewed attention on the fund's exposure to short-term market movements.

The latest figures shared by Coin Bureau suggest that several of the highlighted stocks have since moved sharply lower. They do not establish the fund's actual losses, and they do not settle the broader question of AI's long-term prospects.

What they do illustrate is a central principle of options investing: a compelling long-term thesis can still produce a poor short-term trade when the timing is wrong.

For investors following the AI sector, the distinction between technological progress, company performance and investment returns remains essential.

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Frequently Asked Questions

1. Who is Leopold Aschenbrenner?

Leopold Aschenbrenner is a former OpenAI researcher and the founder of Situational Awareness, an investment fund focused on artificial intelligence-related opportunities.

2. What happened to Situational Awareness in July 2026?

Reuters reported that the fund's portfolio value fell approximately 67% in July following a sharp sell-off in AI-related stocks. The fund subsequently sold most of its public-equity holdings.

3. Why did Aschenbrenner return to options trading?

September reporting indicated that Situational Awareness resumed buying options linked to AI-related stocks. Options can provide exposure to price movements without purchasing the underlying shares, but their value depends on price, time to expiration, volatility and contract terms.

4. Which stocks fell the most in Coin Bureau's October 17 post?

The post reported a 37.4% decline in CoreWeave, followed by 25.8% for SK Hynix and 23.8% for SanDisk, measured from September 8. These figures have not been independently verified in this article.

5. Did Aschenbrenner lose 18.3% on his portfolio?

That cannot be established from the reported stock movements. The 18.3% figure is the simple average of the seven price changes listed in the social media post. Actual portfolio returns depend on position sizes, option contracts, premiums, hedges and subsequent trades.

6. What is the DRAM ticker in the list?

DRAM is the ticker of the Roundhill Memory ETF, an exchange-traded fund providing exposure to memory-related companies. It is not the ticker of a standalone memory-chip manufacturer.

7. Does the sell-off mean the AI boom is ending?

No definitive conclusion can be drawn from these seven price movements alone. AI adoption may continue growing even as individual stocks experience volatility, valuation adjustments or company-specific difficulties.

8. Why are options risky during a technology-stock sell-off?

Options have expiration dates, and their prices are influenced by the underlying stock, time remaining, volatility and other factors. An investor can lose the premium paid if the anticipated price movement does not occur sufficiently quickly or strongly.

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Sources and Fact-Checking Notes

• Reuters — Situational Awareness portfolio sinks 67% in July
• Investing.com — Leopold Aschenbrenner resumes options trading activity
• Yahoo Finance — AI-linked options activity and stocks in focus
• Reuters — AI-related equity volatility and market concerns

Editorial note: The seven percentage changes are attributed to Coin Bureau's October 17, 2026 social media post. They are not presented as independently verified closing-price returns or as a statement of Situational Awareness's actual portfolio performance. The fund's complete options positions and subsequent trades are not established by the cited information.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Options and technology stocks can be highly volatile, and investors may lose some or all of their invested capital.