Taiwan Semiconductor delivered another strong quarter, beating earnings and revenue expectations while raising third-quarter guidance. The company also expanded its planned U.S. investment by $100 billion, bringing its total commitment to $265 billion across 12 semiconductor and packaging facilities. Despite the positive results, the stock weakened and approached a key support level, highlighting a shift in market behaviour. $TSM
Rather than responding primarily to company fundamentals, semiconductor stocks are increasingly taking their cue from South Korea. Overnight, South Korean equities fell 6.4% after the Bank of Korea raised interest rates by 25 basis points, triggering broader pressure across global technology shares. Strong results from $ASML also failed to sustain gains, reinforcing the market’s more cautious tone.
Elsewhere, SpaceX slipped below its IPO price, while Chinese AI stocks gained momentum after Apple selected Alibaba’s Qwen model alongside Baidu’s AI technology for new features. Investors are also looking ahead to China’s AI Conference, where further announcements could support sentiment. $AAPL $BABA
US economic data painted a mixed picture. Retail sales missed expectations, suggesting consumers remain under pressure, although lower-than-expected jobless claims pointed to a resilient labour market. Meanwhile, escalating conflict between the US and Iran continues to threaten shipping through the Strait of Hormuz, yet markets remain largely focused on AI and technology trends. $ASML
