Still crashing! Tonight, memory chips and optical communications collectively plummeted
[Introduction] AI hardware is still plummeting Hello everyone, tonight’s U.S. stock market, judging from the three major indexes, seems to be calm, but the AI hardware technology sector is still "bloody" and is still plummeting! Although TSMC gave a solid performance outlook, it still failed to boost investor confidence after the company increased its capital expenditure plan.
[Introduction] AI hardware is still plummeting Hello everyone, tonight’s US stock market, judging from the three major indexes, seems to be calm, but the AI hardware technology sector is still "bloody" and is still plummeting! Although TSMC gave a solid performance outlook, it still failed to boost investor confidence after the company increased its capital expenditure plan. Judging from the disk, the Nasdaq 100 Index tried a deep "V" trend during the session, but the rebound seemed weak. In addition, the force supporting this deep "V" was not the AI hardware stocks themselves, but the rise of traditional technology companies such as Google, Microsoft, Apple, and Amazon. In other words, although the index was a bit like a "V", the memory chip and optical communication sectors still plummeted! In addition, the Korean stock market will be closed on Friday. I hope our market can get out of an independent rise! Let's see what happened tonight. On the evening of July 16, the three major U.S. stock indexes had mixed gains and losses. The Dow rose slightly, the Nasdaq fell 0.7%, and the S&P fell slightly. The Nasdaq 100 index, which is more concentrated in technology stocks, fell about 1% and tried to rebound several times during the session. The Philadelphia Semiconductor Index plunged more than 3%! In terms of individual stocks, the memory chip and optical communications sectors seem to show no signs of stopping their decline! SanDisk and Corning plunged 9%, SK Hynix and Western Digital plunged more than 7%, Micron Technology fell nearly 5%, and Lumentum plunged 6%. On the other hand, Apple rose about 1%, Microsoft rose about 0.8%, and Google rose slightly. It can be seen that investors in US stocks are also switching styles. The analysis pointed out that investors are currently grappling with one question: Whether the valuation of technology stocks is already too high when there is still huge uncertainty about when trillions of dollars in artificial intelligence spending will bring huge returns. Matt Malley of Miller Tabak said that such a negative market reaction to TSMC's stock price after announcing strong results will inevitably intensify investors' concerns about this key leading sector. He said: "The next trend of chip stocks is still the most important issue in the entire stock market. Chip stocks have indeed shown some obvious cracks, so they must usher in a strong and sustainable rebound as soon as possible, otherwise they will release a real warning signal." The J.P. Morgan team continues to be bullish on a "barbell strategy" that allocates to both technology and cyclical stocks, and holds healthcare stocks as an allocation direction with low correlation to other assets. Within the technology sector, they believe that the current trading logic of "long semiconductors, short the 'Big Seven' or software stocks" commonly used in the market may change. Given the already low valuations, capital may flow back into the Big Seven. However, the team also warned that investors may first need to see changes in at least one of two aspects: first, the adoption of artificial intelligence by end users has accelerated significantly; second, corporate profit growth has further improved, thereby reducing the company's future dependence on credit market financing. Finally, it is gratifying that the China Concept Stock Index rose 2.5%! (