Coronation Asset Management Ltd., which oversees $47 billion, has trimmed its exposure to chipmakers and increased its allocation to India, as expectations for artificial intelligence stocks have risen to levels that are nearly impossible to beat.
Taiwan stocks dropped, poised to enter a technical correction, as Taiwan Semiconductor Manufacturing Co.’s results stoked worries over heavy spending and a weaker outlook for profitability.
US stocks fell on Thursday, with the Nasdaq composite sliding 1.4% as Taiwan Semiconductor Manufacturing Co.'s results failed to support artificial-intelligence stocks. The decline was exacerbated by rising geopolitical tensions in the Middle East, leading traders to reassess the sustainability of AI-related investments.
US stocks declined on Thursday as Taiwan Semiconductor Manufacturing Co.’s results failed to boost artificial-intelligence stocks and traders assessed a worsening situation in the Middle East.
Taiwan Semiconductor Manufacturing (TSMC) reported a 68% increase in June revenue, breaking a four-year seasonal pattern. Typically, June is a month of revenue decline for the world's largest contract chipmaker, but this year saw an unexpected acceleration instead.
Taiwan Semiconductor Manufacturing Co. raised its spending and revenue projections for the year, reflecting its confidence that torrid growth in demand for chips and data centers will extend into 2027.
ASML Holding NV is considering raising prices for its chipmaking equipment, including a 10% increase for its DUV systems. This potential price hike may lead to tensions with its largest customer, Taiwan Semiconductor Manufacturing Co., which is reportedly resisting ASML's pricing plans.
At a time of acute investor unease over a selloff in AI-inflated tech stocks, this week’s results from Taiwan Semiconductor Manufacturing Co. and ASML Holding NV carry even greater significance than usual.
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