STOCKS | Swissquote Analyst Says Tech Selloff Partly Stemmed From TSMC Capex Guidance Increase

Swissquote analyst Ipek Ozkardeskaya said TSMC's higher capital expenditure guidance may have raised market concerns and contributed to the selloff in technology stocks. According to Jin10, she said TSMC's second-quarter profit hit a record high, but its share price failed to get a boost, reflecting the market's view that chip stocks are already too expensive. She added that investors may be growing uneasy about large-scale AI buildouts because of overcapacity risks, even as tech companies continue to spend. Major U.S. tech companies are due to report earnings next week, which may improve the recent weaker market sentiment. There are also signs that companies such as Alphabet are stepping up infrastructure spending further, which could weigh on share prices.