US Markets Slide on Taiwan Semiconductor Capex Forecast
US markets bled overnight as concerns over AI sustainability rose after Taiwan Semiconductor Manufacturing (TSM) hiked its capital expenditures for 2026 to between $60 billion and $64 billion, up from a previous range of $52 billion to $56 billion.
The company's massive capex forecast sent shockwaves across the technology sector, with major AI names including Nvidia Corp. (NVDA), Alphabet Inc. (GOOG, GOOGL), Amazon.com Inc. (AMZN), and Meta Platforms Inc. (META) closing lower at the close.
Semiconductor stocks were particularly hard hit, with Micron Technology Inc. (MU), Advanced Micro Devices Inc. (AMD), Intel Corp. (INTC), and Broadcom Inc. (AVGO) clocking declines over 5% each. The VanEck Semiconductor ETF (SMH) slumped nearly 4%.
However, many Wall Street analysts believe that the selloff is temporary. Arthur Cheong, CEO and Chief Investment Officer of Singapore-based DeFiance Capital, said in a post on X that this appeared to be a mid-cycle correction instead of a full-cycle top.