Ruixun Bank: Part of the sell-off in technology stocks was due to TSMC raising its expected capital expenditure.

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Golden Finance News reported that on July 17, Ipek Ozkardeskaya, an analyst at Swiss quote bank, said that TSMC’s raised capital expenditure guidance could trigger market concerns and lead to a sell-off in tech stocks. She noted that although TSMC’s second-quarter profit hit an all-time high, the stock price failed to receive 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 becoming increasingly uneasy about large-scale AI buildouts, but technology companies are still continuing to spend. Next week, major US tech companies will be releasing their earnings reports one after another, which may help improve the recent weak market sentiment. However, there are signs that companies such as Alphabet are further increasing infrastructure spending, which could further weigh on stock prices.
TSM-2.56%
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