US Tech Selloff Drags Taiwan Night Session
Doubts over monetization of artificial intelligence investment heated up, US tech stocks plunged, and the Philadelphia Semiconductor Index plunged 829.398 points or 7.2% to close at 10688.801 points. TSMC American depositary receipts fell 5.95%, NVIDIA fell 4.22%, AMD plunged 10.88%, Intel plummeted 28.58%. Marvell, Qualcomm and SanDisk fell more than 10%, Broadcom fell 5.48%, SK Hynix American depositary shares fell 7.95%, and Micron fell 5.3%. The Dow Jones Industrial Average fell 572.25 points or 1.09% to close at 51770.31 points, the S&P 500 Index fell 140.32 points or 1.82% to close at 7580.07 points, and the Nasdaq Index fell 747.72 points or 2.86% to close at 25437 points. Taiwan index futures in the night session fell 867 points to close at 44433 points, breaking below 45000 points, and TSMC futures in the night session fell 87 points to close at 2289 points.
Institutions Analyze AI Concerns and Fundamentals
Taishin Investment Advisory strategist Huang Wenqing analyzes that US and Taiwan股市 are in a super earnings week, with the US midterm elections coming next week, and the market shrouded in worries that AI burns too much money and monetizes too slowly. But overall, AI industry fundamentals have not turned bearish, including Meta, Alphabet and Amazon capital expenditures not pulling back, and Microsoft capital expenditure plans also not affected by weakening demand, with expectations that emerging cloud providers have weaker financial resilience and future capital may concentrate further toward large firms. Institutions analyze that cloud service giants and AI chip majors continue to increase infrastructure investment, financing scale has expanded, the market worries about cash flow and monetization ability, bubble fears remain, hitting AI chip stocks hard.
Taiwan Stocks Test 45000-Point Support
Huang Wenqing said that since October international tech stocks have corrected notably, Taiwan stocks have been relatively resilient versus the Philadelphia Semiconductor Index and Korean股市, but the high level has made them a source of funds for foreign investors, with short-term domestic selling pressure, watching whether the Philadelphia Semiconductor Index can stand back above its annual line, whether Delta Electronics, UMC and others turn positive, and whether margin overhang eases. Foreign investors net sold a cumulative NT$9943 hundred million of Taiwan stocks in October, and the weighted index plunged 1156.5 points on the 30th to close at 45211.83 points, falling below the half-year line at about 45315 points. The three major institutional investors sold a combined net 1398.44 hundred million, and foreign investors' net short positions in Taiwan index futures rose to 9萬2241 contracts. Institutions point out that with the US midterm elections variable in early November, high oil prices, unclear Middle East conditions, plus the fundraising suction effect of the Anthropic initial public offering, Taiwan stocks next week may test 45000 points, watching whether the intraday low of 44726 points on the 30th can hold, awaiting a bottoming signal.