Alphabet Cloud Doubles, Still Unable to Offset Negative Cash Flow Headwind
Google parent Alphabet reported third-quarter earnings, with single-quarter revenue reaching 1275.77億美元, up 25% year-on-year, including Google Cloud revenue of about 307.1億美元, up 103% year-on-year, showing continued strong demand for enterprise AI computing and cloud services. However, search advertising growth missed Wall Street expectations, equity investment losses dragged overall profit, and huge AI infrastructure spending also brought funding pressure, with third-quarter free cash flow at negative 90.7億美元, clearly below market expectations. The market worries that tech giants' heavy spending on AI infrastructure will be hard to convert into corresponding cash flow in the short term, dragging its US stocks 28日 after-hours to plunge nearly 10% at one point.
TSMC Opens Lower and Weakens, Breaking Below 2400元 Mark Intraday
Affected by selling pressure in US tech stocks, Taiwan stocks weakened together today (29)日, with heavyweight TSMC (2330) opening at 2420元, hitting an intraday low of 2390元, down 35元, breaking below the 2400元 mark. As of up to上午11時42分, TSMC was temporarily reported at 2395元, down 30元, or 1.24%, with trading volume of 8957 lots. The share price also fell below the prior quarterly-line reference level of about 2420元, and whether it will stop falling remains to be seen. Recent foreign-investor sentiment has turned wait-and-see, also leaving the stock consolidating near the quarterly line.
Analyst: Fundamentals Intact, Chance to Challenge Prior High of 2590元
Cathay Securities Futures Consulting Division Assistant Vice President Guo Jingwei analyzed that TSMC's prior investor conference maintained a positive outlook for fourth-quarter operations, and reiterated strong AI demand, with foundry and advanced-packaging order visibility extending to next year, so the company's fundamentals have no major problem. Factors affecting market confidence recently, besides uncertainty over the US midterm elections, include earnings performances of tech giants such as Alphabet, which investors are focusing on. If related uncertainties gradually dissipate, the share price still has a chance to rechallenge the prior high of 2590元.
Strategy Sees Buying on Declines, Not Rallies; Watch Staged Layout on Pullback to Quarterly Line
Regarding strategy, Guo Jingwei offered a view of buying on declines rather than rallies, believing investors can watch for staged layout opportunities when the share price pulls back to test the quarterly line. However, the short-term share price has fallen below the quarterly line, volatility risk remains, and target prices and trading suggestions do not mean subsequent market moves will necessarily develop as expected. Investors should judge independently, evaluate prudently and bear their own investment risks.