TSMC raised its full-year capital expenditure forecast<\/a> to between $60 billion and $64 billion, up from $52 billion to $56 billion, but investors focused instead on concerns that the industry’s aggressive investment cycle might be becoming increasingly difficult to justify.<\/p>\n“Another wipe out for U.S. tech and AI with recent momentum winners taking another leg lower after TSMC’s earnings yesterday in Asia were not seen as strong enough to justify further upside for the sector and raising concerns over excessive spending,” said Andrew Jackson, strategist at Ortus Advisors.<\/p>\n
Jackson said the sell-off reflected an unwinding of crowded AI momentum trades rather than a deterioration in the sector’s long-term fundamentals.<\/p>\n
The latest losses extend a sharp reversal in global AI-related shares after months of outsized gains, with investors increasingly questioning whether lofty valuations can be sustained as spending on AI infrastructure continues to accelerate.<\/p>\n
Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"CANADA – 2025\/08\/07: In this photo illustration, the SoftBank Group (Soft Bank) logo is seen displayed on a…\n","protected":false},"author":2,"featured_media":589701,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[261],"tags":[4129,10854,291,23327,4058,289,290,48229,491,860,9450,207,18,19,17,81156,157630,249964,185729,188,68950,21958,88271,5442,2428,162917,22965,82,12274,146847,10861,384,777,165996,4054],"class_list":["post-589700","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-advanced-micro-devices-inc","tag-advantest-corp","tag-ai","tag-alibaba-group-holding-ltd","tag-arm-holdings-plc","tag-artificial-intelligence","tag-artificialintelligence","tag-baidu-inc","tag-breaking-news-markets","tag-breaking-news-technology","tag-broadcom-inc","tag-business-news","tag-eire","tag-ie","tag-ireland","tag-ishares-msci-japan-etf","tag-ishares-semiconductor-etf","tag-kioxia-holdings-corp","tag-kuaishou-technology","tag-markets","tag-meituan","tag-micron-technology-inc","tag-sk-hynix-inc","tag-softbank-group-corp","tag-south-korea","tag-spdr-sp-semiconductors","tag-taiwan-semiconductor-manufacturing-co-ltd","tag-technology","tag-tencent-holdings-ltd","tag-tencent-music-entertainment-group","tag-tokyo-electron-ltd","tag-united-states","tag-vaneck-semiconductor-etf","tag-viasat-inc","tag-world-markets"],"share_on_mastodon":{"url":"","error":"Validation failed: Text character limit of 500 exceeded"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/589700","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=589700"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/589700\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/589701"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=589700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=589700"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=589700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}