TSMC’s higher capital expenditure may pressure short-term profits, so the market is reacting to near-term cash flow. However, if AI demand continues to grow, today’s investment could strengthen its long-term competitive advantage. I also think some funds may rotate into more defensive sectors such as insurers like Prudential and major banks while investors wait for the next AI buying opportunity. A healthy rotation doesn’t necessarily end the AI story—it can simply create opportunities for patient long-term investors. This is just my market view, not investment advice.
O
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☕️ [Task Coins Giveaway] Daily Market Talk — TSMC Beats, But Chips Bleed
TSMC crushed its quarter and raised its outlook, yet the whole chip complex got dumped anyway, because it also jacked up how much it plans to spend. Memory took the worst of it (SK Hynix -13%, SanDisk...
