US Tech Stocks Plunge as Philadelphia Semiconductor Index Tumbles
Concerns over monetization of artificial intelligence investments intensified, and US tech stocks plunged. The Dow Jones Industrial Average fell 572.25 points or 1.09% to close at 51770.31 points, the Standard & Poor's 500 Index fell 140.32 points or 1.82% to close at 7580.07 points, the Nasdaq Index fell 747.72 points or 2.86% to close at 25437 points, and the Philadelphia Semiconductor Index plunged 829.398 points or 7.2% to close at 10688.801 points. 台積電 US depositary receipt fell 5.95%, Intel plunged 28.58%, Nvidia fell 4.22%, AMD tumbled 10.88%, Marvell, Qualcomm and SanDisk fell more than 10%, Broadcom fell 5.48%, memory maker SK海力士 US depositary shares fell 7.95%, and Micron fell 5.3%.
AI Capital Expenditure Concerns Linger
Taishin Investment Advisory strategist 黃文清 analyzed that US and Taiwan stock markets are in the midst of a super earnings season, with US midterm elections coming next week, and the market shrouded in worries that artificial intelligence burns too much cash and monetizes too slowly. But on the whole, artificial intelligence industry fundamentals have not turned negative, including Meta, Alphabet and Amazon whose capital expenditures have not pulled back, and Microsoft's capital expenditure plan was also not affected by weakening demand. It is expected that 新興 cloud operators have weaker financial resilience, and capital may concentrate further toward large firms in the future. Institutional analysts said major Taiwan and US electronics and technology companies have successively reported earnings, with revenue and profit continuing to grow on strong artificial intelligence industry demand. However, cloud service giants and AI chip makers continue to increase investment in key components and equipment for infrastructure, with expanded financing scale. The market worries about impact on cash flow and investment monetization ability, with bubble concerns unresolved, hitting US AI chip stocks and the technology sector hard.
Heavy Foreign Selling Pushes Taiwan Stocks Below Half-Year Line
Foreign investors cumulatively sold a net 達新 Taiwan dollars 9943 hundred million in Taiwan stocks in October, continuously reducing holdings in electronics heavyweights such as 台積電, 聯發科 and 台達電. The Taiwan Weighted Index fell 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, of which dealers sold a net 513.7 hundred million, investment trusts bought a net 239.93 hundred million, and foreign and mainland investors sold a net 1124.67 hundred million. In TAIFEX net positions, the three major institutional investors' net short positions increased by 501 contracts to 1294 contracts on the 30th, of which foreign investors' net short positions increased by 2719 contracts to 9 million 2241 contracts. The TAIFEX night session fell below 45000 points, dropping 867 points to close at 44433 points, and 台積電 futures night session fell 87 points to close at 2289 points.
Next Week to Test 45,000-Point Support
Observing Taiwan stock movements, 黃文清 said that since October international technology stocks have clearly corrected, and Taiwan stocks have been relatively resilient versus the Philadelphia Semiconductor Index and neighboring South Korean stocks, but the high level has also made them a source of cash for foreign investors, with short-term pressure from domestic investors selling into each other to digest chips. Looking ahead, institutions pointed out that early November brings the variable of US midterm elections, international oil prices remain high recently, the Middle East situation remains unclear, plus the fundraising effect of Anthropic's public offering filing, with some international funds staying on the sidelines or withdrawing from Asian stock markets. Taiwan stocks face clear pullback pressure at next week's open, electronics heavyweights remain under pressure, and the Weighted Index will test support at the 45000-point mark, with attention on whether it can hold the intraday low of 44726 points on the 30th. Afterwards watch for signs of stabilization, including whether the Philadelphia Semiconductor Index can climb back above its annual line, whether recently weak 台達電 and 聯電 turn positive, and whether margin overhang lightens significantly, while waiting for the number of declining listed companies to narrow and volume to recover.