Overview
- TSMC, which reported record second-quarter revenue on Thursday, raised its annual capital expenditure guidance and warned of higher prices, a combination that unexpectedly spooked investors and kicked off heavy selling in chip stocks.
- Memory-chip makers plunged in the follow-through selling with Micron, SanDisk, Western Digital and SK hynix posting sharp declines that helped drive the Philadelphia semiconductor index to multi-week lows.
- The chip rout dragged the Nasdaq and S&P 500 lower while the Dow was partially supported by strong healthcare earnings, and futures signaled further downside early Friday.
- Renewed U.S.-Iran military strikes lifted oil prices and financial-market stress, pushed Bitcoin below key support levels, and heightened concerns about shipments through the Strait of Hormuz.
- The episode highlights concentration risk in markets because a few chip and AI leaders now sway major indexes, and investors will be watching capex plans, quarterly guidance and Treasury yields for signals on margins and broader market direction.