The decline in Asian chip stocks intensified. Although the results announced by TSMC were strong, they failed to meet investors' high expectations, triggering market concerns about increased capital expenditure and weak profit prospects. TSMC's stock price once fell 6.5% in Taipei, after the company raised its capital expenditure and revenue forecasts for this year. Despite the overall positive trend, some analysts and investors emphasized that in addition to being tired of the artificial intelligence boom that has continued for many years, rising costs are also a cause for concern. The Bloomberg Asia Chip Stock Index fell more than 6%. Japanese flash memory manufacturer Kioxia Holdings declined significantly, at one point falling 16%. The company's market capitalization has shrunk by half from its June high in recent weeks, but it's still up about 400% since this year. Leonid Mironov, portfolio manager at Gavekal Capital Ltd., said that the stock price fell after the favorable results were announced, indicating that the market is considering a shift from chip stocks to other asset allocations, at least for the time being. He added, “Furthermore, the valuation multiplier is already too high, so even if Kioxia's stock price falls by 50%, it's still not cheap.”
Zhitongcaijing · 2d ago
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The decline in Asian chip stocks intensified. Although the results announced by TSMC were strong, they failed to meet investors' high expectations, triggering market concerns about increased capital expenditure and weak profit prospects. TSMC's stock price once fell 6.5% in Taipei, after the company raised its capital expenditure and revenue forecasts for this year. Despite the overall positive trend, some analysts and investors emphasized that in addition to being tired of the artificial intelligence boom that has continued for many years, rising costs are also a cause for concern. The Bloomberg Asia Chip Stock Index fell more than 6%. Japanese flash memory manufacturer Kioxia Holdings declined significantly, at one point falling 16%. The company's market capitalization has shrunk by half from its June high in recent weeks, but it's still up about 400% since this year. Leonid Mironov, portfolio manager at Gavekal Capital Ltd., said that the stock price fell after the favorable results were announced, indicating that the market is considering a shift from chip stocks to other asset allocations, at least for the time being. He added, “Furthermore, the valuation multiplier is already too high, so even if Kioxia's stock price falls by 50%, it's still not cheap.”
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