Analyst: The sell-off in tech stocks is partly due to TSMC raising its capital expenditure forecast.
60 minutes ago
Swissquote analyst Ipek Ozkardeskaya said TSMC’s upward revision of its capital expenditure forecast may have sparked market concerns, triggering a sell-off in tech stocks. She noted that despite TSMC posting record second-quarter profits, its share price failed to get a lift, reflecting the market’s view that chip stocks are currently overvalued. Amid overcapacity risks, investors may be growing increasingly uneasy about large-scale AI infrastructure builds, though tech companies continue to ramp up spending. Next week, major U.S. tech firms will release earnings reports sequentially, which could help improve the recent weak market sentiment. However, signs indicate that companies like Alphabet are further increasing infrastructure spending, which may further weigh on share prices.
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