US Tech Earnings Miss Drags Down Night Session
The four major US stock indexes opened lower and moved lower on the 29th, as weaker-than-expected earnings from Google triggered selling in AI tech stocks. Lin Han-wei, analyst at Moore Investment Advisors, noted that after hours Amazon plunged 10% and Intel plunged 21%, while Nasdaq futures fell another 1.4% in electronic trading. As tech bearish news spread, TAIFEX night session tumbled 643 points, and TSMC ADR ended four straight gains. He warned that if the quarterly line and prior-low support are broken, foreign-investor futures shorts keep hitting new highs, plus volume gets out of control and divergence grows too large, the worsening of the three bearish reversal signals calls for cutting positions to hedge, keeping holdings under control, not rushing to buy rebounds, weeding out the weak and keeping the strong, and waiting for a stabilization signal.
Taiwan Chips Await Consolidation for Stabilization Signal
Taiwan stock chips still need整理, with margin balances at about NT$632.3 billion on October 28, up NT$10.1 billion from end-September, showing leverage did not fall明顯 during the pullback; since October foreign investors have sold a net about NT$813 billion, creating short-term pressure. However the quarterly and half-year lines remain upward, providing technical support. If foreign selling eases and margin positions consolidate, repeated tests near the quarterly line with lows no longer moving lower will favor bottoming. Statistics show Taiwan stocks rose 60% of the time in November over the past decade with average return of 3.06%; from 2016 to 2025 nine of ten fourth quarters rose, a 90% up ratio with average return of 5.87%, for year-end reference, with a long-term buy-on-dips bias.
Delta Electronics Bets on AI While ADATA Earns Over 100 TWD
Delta Electronics held its third-quarter earnings call on the 29th, with Chairman Cheng Ping saying AI server and data center demand remains growing and fourth-quarter revenue is expected to beat the third quarter. AI-related business revenue share is approaching 50%, with liquid cooling and high-voltage DC power continuing to advance, and a large manufacturing base to be built in Penang, Malaysia for upcoming orders, with growth still expected next year but possibly hitting roadblocks. Memory module maker ADATA posted EPS of 101.47 TWD for the first three quarters, topping 100 for the first time, becoming the second member of the 100-TWD profit club based on reported earnings after Largan Precision's 121.98 TWD for the first three quarters.
Alphabet Cash Flow Worsens as Fed Holds Steady
Google parent Alphabet missed Wall Street expectations for both third-quarter revenue and net profit, the first time in nearly 4 years, with free cash flow negative for 2 straight quarters, while warning capital spending will climb further next year, raising AI return-on-investment worries, plunging about 13% premarket on the 29th. The US Federal Reserve announced at 2 a.m. on the 29th that it would keep its benchmark rate unchanged, but with 2 officials voting for a 1-code hike, the policy statement stressed inflation remains high, with markets pricing the December hike odds at over 80%.