CHIP STOCKS LOSE $1.64 TRILLION, TSMC POSTS RECORD RESULTS, AND APPLE HITS $5 TRILLION!
The AI sell-off is getting serious.
AI chip stocks lost over $1.64 trillion in market value in six trading sessions, even as TSMC reported its strongest quarter ever. Meanwhile, South Korea’s market suffered a massive sell-off, while Apple reached a historic valuation milestone.
The biggest market moves
Chip stocks: The Philadelphia Semiconductor Index fell 11.6% in six sessions as concerns over AI-related debt rattled investors.
TSMC: Revenue jumped 41.2% to $46.72 billion, while net income surged 68.7%. Yet, its shares still fell as investors worried about the cost of funding the AI boom.
South Korea: The KOSPI plunged 7.57% in one session, wiping out nearly $298 billion in market value. Foreign investors sold, while local investors stepped in to buy.
Apple: Its market value crossed $5 trillion for the first time at a closing bell, making it only the second company in history to reach the milestone.
What’s driving the sell-off?
Investors are increasingly worried about the massive borrowing needed to build AI data centres. Rising inflation and borrowing costs are adding pressure, even as demand for AI chips remains strong.
The bigger question now is whether the AI opportunity can justify the enormous cost of building it.
To read more, click: Vested Shorts: Chip Sector Volatility, TSMC Record & Apple $5T