US Stocks Diverge as Philadelphia Semiconductor Index Plunges
On the first trading day after the US midterm election results were revealed, the Dow Jones Industrial Average surged 1569.4 points, up 3.03%, while the Philadelphia Semiconductor Index fell 331.75 points, down 3.13%. Memory and storage-related stocks were hit hardest, with Micron, SanDisk, and Seagate all falling more than 7%, and silicon photonics concept stocks performing even weaker. Wealth Media Chairman Hsieh Chin-ho analyzed that this correction in the AI supply chain is closely tied to the election results in Texas, Ohio, and Georgia.
Three States Flip, All Advocate Pausing Construction
Texas, Ohio, and Georgia all elected Democratic female governors this time, whose platforms all involve pausing the development and construction of data centers. Among them, Texas governor-elect Gina Hinojosa, a former labor-movement lawyer, holds the toughest stance. Over the past two years, large US cloud operators have sited data centers in these three states, with related power construction also concentrated in these areas. If the three new governors jointly block data center construction, the advancement of US AI infrastructure may face added uncertainty.
Musk Layout and TSMC Fab Plan in Focus
Hsieh Chin-ho pointed out that if Texas policy shifts, Elon Musk may be hit first. He located SpaceX headquarters in Texas and sited the TeraFab project there, and in light of the new governor's policy stance, even joked that he might move related plans to space in the future. Texas saw both its gubernatorial and senatorial races flip from red to blue this time, potentially disrupting his original layout. Taiwanese companies have in recent years also viewed Texas as a new investment cluster, and whether TSMC's plan to build a fab in Texas will be affected, and whether the local investment environment will see changes, deserve continued observation.
Trump Premium Fades, Memory Stocks Hit Hardest
Hsieh Chin-ho also noted that another reason for this correction is the fading Trump premium. Trump demanded chips be produced in the United States, Intel converted US government subsidies into equity, and Masayoshi Son and Nvidia CEO Jensen Huang successively increased investment in Intel, once driving its share price sharply higher. However, Intel shares once reached as high as 142.35 dollars and have now fallen back to 56.77 dollars, down more than 60% from the high, as the market reprices US semiconductor policy and related investment themes. This correction has centered on the memory sector, with SK Hynix shares falling below their previous low, the Hong Kong-listed 2x leveraged product tracking Hynix plunging 90%, the Samsung-related 2x leveraged product also falling 80%, and the 3x leveraged SOXL and KORU likewise facing heavy selling pressure. He warned that if the three states jointly restrict data center buildout, Taiwan's AI supply chain could bear the brunt, with recent sharp declines in the Philadelphia Semiconductor Index and Japanese and South Korean stock markets reflecting market concerns over this policy variable.