Analyst: Tech Stock Sell-Off Partially Due to TSMC's Increased Capex Outlook

BlockBeats News, July 17th, Credit Suisse analyst Ipek Ozkardeskaya stated that TSMC's upward revision of capital expenditure expectations may have triggered market concerns, leading to a selloff in tech stocks. She pointed out that despite TSMC posting a record high profit in the second quarter, the stock price failed to gain momentum, reflecting the market's view that chip stocks are currently overvalued. Due to the risk of overcapacity, investors may be growing increasingly concerned about large-scale AI development, but tech companies are still continuing to spend.

Next week, major U.S. tech companies will release their earnings reports one after another, which may help improve the recent weak market sentiment. However, there are signs that companies like Alphabet are further ramping up infrastructure spending, which could further weigh on stock prices. (FX168)