Swissquote analyst Ipek Ozkardeskaya said Taiwan Semiconductor Manufacturing Co.'s higher capital expenditure outlook may have fueled market concern and contributed to a sell-off in technology stocks. She said TSMC's record second-quarter profit failed to lift its shares, a sign that investors may see chip stocks as already too expensive. Ozkardeskaya also pointed to concerns over excess capacity, saying investors may be growing more uneasy about large-scale artificial intelligence buildouts even as tech companies keep spending. Next week, major U.S. technology companies are due to report earnings, which could help improve recently weak market sentiment. At the same time, she said there are signs that companies including Alphabet are continuing to increase infrastructure spending, a factor that could weigh further on share prices.
On July 17, BlockBeats reported that Swissquote analyst Ipek Ozkardeskaya said Taiwan Semiconductor Manufacturing Co.'s raised capital expenditure outlook may have sparked market concern and contributed to a sell-off in technology stocks.
She said that although TSMC posted a record profit for the second quarter, its share price did not get a boost, suggesting that the market sees chip stocks as already carrying stretched valuations.
Ozkardeskaya added that, given the risk of excess capacity, investors may be becoming increasingly uneasy about large-scale artificial intelligence buildouts, even as technology companies continue to spend.
Major U.S. technology companies are scheduled to release earnings next week, which could help improve recently weak market sentiment. Even so, she said there are signs that companies including Alphabet are stepping up infrastructure spending, which may put additional pressure on share prices.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
