Analyst: Some of the selloff in tech stocks was due to TSMC raising its capital expenditure outlook

BlockBeats news, July 17. Reuters Bank analyst Ipek Ozkardeskaya said that TSMC’s raised capital expenditure guidance may trigger market concerns and lead to a sell-off in tech stocks. She noted that although TSMC’s second-quarter profit hit a record high, the stock price failed to get a boost, reflecting the market’s view that chip stocks’ current valuations are already too high. Due to the risk of excess capacity, investors may be increasingly uneasy about large-scale AI buildouts, but technology companies are still continuing to spend.

Next week, major US technology companies will release earnings reports one after another, which could help improve the market sentiment that has been weak recently. However, there are signs that companies such as Alphabet are further ramping up infrastructure spending, which may further weigh on the stock prices. (Jin10)