Opening Recap
Market Pulse: Tech sector drifted lower as TSMC’s record quarter ended with a stock plunge that reverberated across Asia’s chip space, dragging global markets into the red.
Key Movers: TSMC’s “record-breaking quarter somehow triggers a 7.3% stock plunge and an Asian chip selloff” and Asia’s chip darlings are getting crushed after a blockbuster run as investors pivot to hyperscalers.
Macro & Politics: South Korea’s KOSPI and KOSDAQ shut down for Constitution Day while China’s central planners promise support amid liquidity fears stoked by CXMT’s massive IPO.
What’s Next: Earnings from AI chip names land this week and any hints of new Beijing subsidies will be the spark for the next market move.
Market Commentary
What everyone’s missing is that the hype around AI chips is steering you into a hype trap while ignoring critical upstream materials. Take the “Indium Phosphide Wafer Market Size to Hit USD 679.76 Million by 2035” report (GlobeNewswire)—those wafers are the keystone for photonic and quantum breakthroughs, yet most China Semiconductor ETF plays skip this link. That blind spot will sting when supply tightens and margins get squeezed.
Meanwhile, TSMC’s swoon after a banner Q2 (Crypto Briefing) coincided with the CXMT IPO liquidity scare (“Global Market: China stocks face steep weekly losses as CXMT IPO sparks liquidity crunch fears,” The Times of India). These aren’t isolated blips—they’re part of a capital rotation where money flees stretched chip names into new listings, leaving legacy plays exposed to funding drip-drip.
Action time: trim your hyperscaler chase and carve out exposure to Tata Electronics’ chip foray (Livemint) or ride the wave as Coronation shifts toward India stocks (“Coronation trims TSMC, SK Hynix exposure as $47B fund shifts toward India stocks,” Crypto Briefing). Keep stops tight, because this game flips faster than any subsidy announcement from Beijing.
📈 Breaking Financial News
China Semiconductor ETF: Are Investors Overlooking A Key Component In The Global AI Supply Chain?
Summary
– The global semiconductor and advanced AI chip theme that has captivated markets this year has moved on from Nvidia and Micron in the US to SK Hynix in Korea and TSMC in Taiwan.
– Our China semiconductor ETF, the KraneShares China Technology & Semico
Is the AI stock boom losing steam after the latest chip selloff?
The Asian selloff followed a broad decline in U.S. semiconductor stocks, where the Philadelphia Semiconductor Index dropped more than 4%. Investors questioned lofty AI-related valuations, even after strong quarterly earnings from Taiwan Semiconductor Manufact
Eoptolink files for Hong Kong listing that could raise up to $5bn
Eoptolink Technology, a Chinese maker of the optical parts that shuttle data between AI chips, has filed for a Hong Kong listing that could raise as much as $5bn, according to Bloomberg. The paperwork arrives roughly three months after the company picked bank
Asia's chip darlings are getting crushed after a blockbuster run
Kioxia's stock has halved from its peak, while Samsung and SK Hynix have each shed about a third of their value as Asia's AI chip rally cools.
Global Market: AI chip rally faces valuation test as investors rotate towards hyperscalers
AI chipmaker stock rallies are losing momentum as investors reassess valuations. Hyperscaler capital expenditure growth is projected to slow sharply after this year. Fund managers are rotating capital into hyperscalers and AI-benefiting sectors. Financing AI
The Comeback of the Century: Wall Street Wrote Him Off…
But Elon's $3 Trillion Comeback Could Begin Soon Elon Musk was declared washed up and finished. But any day now, he could unveil a new technology that outshines Tesla, SpaceX, even PayPal… a breakthrough big enough to solve America's toughest problem, make President Trump a hero to the Western World… and spark a $3 trillion boom. Early investors could see massive gains. Details here.
🔍 Market Analysis & Insights
Global Market: China stocks face steep weekly losses as CXMT IPO sparks liquidity crunch fears
Chinese and Hong Kong equities fell sharply as CXMTs $8.6 billion IPO and a pipeline of large listings raised concerns that liquidity would be diverted from secondary markets. Technology stocks led the sell-off, with profit-taking, stretched valuations and I
Mitsubishi Electric Eyes Power-Chip Merger With Rohm and Toshiba
Mitsubishi Electric Corp. seeks to reach a deal by September with rivals Toshiba Corp. and Rohm Co. to combine their power semiconductor operations.
South Korea's KOSPI and KOSDAQ Markets Are Closed Friday for Newly Reinstated Constitution Day Holiday
South Korea's stock markets, including KOSPI, are closed for Constitution Day, impacting global investors tracking semiconductor stocks. The holiday marks a return to the national calendar after years of absence.
Screens are straining young eyes, and Alcon sees India's opportunity
Alcon is increasing investments in India, recognizing its significant emerging market potential. The company focuses on innovation and surgeon training to address rising eye care needs. India's large population and growing myopia present substantial future gr
Coronation trims TSMC, SK Hynix exposure as $47B fund shifts toward India stocks
Coronation Fund Managers, overseeing $47 billion, trims TSMC and SK Hynix positions while boosting Indian equities amid stretched AI valuations.
The Elon Musk “Mystery Metal” That Could Break China's Grip
Trump called America's rare-ea quietly engineered by Elon Musk… could end that crisis forever. And one tiny company is sitting at the center of it all. Musk is expected to make an announcement any day now. See more about this secret project here.
💰 Investment Opportunities
Indium Phosphide Wafer Market Size to Hit USD 679.76 Million by 2035 | SNS Insider
Global Indium Phosphide Wafer Market Size, Share, Trends & Segment by Diameter, Wafer Doping Type, Manufacturing Technology, End Use and Forecast 2026–2035
TSMC’s record-breaking quarter somehow triggers a 7.3% stock plunge and an Asian chip selloff
TSMC posted record Q2 2026 revenue of $40.2B and raised its growth outlook, but its stock fell 7.3%, triggering a broad Asian chip stock selloff.
Motilal Oswal starts coverage on an aerospace stock that’s up 40% in 2026. Know target, upside
Motilal Oswal has initiated coverage on Unimech Aerospace with a Buy rating and a target price of Rs 1,530, implying 27% upside. The brokerage expects strong earnings growth driven by aero tooling, precision engineering, strategic acquisitions and favourable
Global stocks fall $1.3T as AI trade reverses, tech stocks hit
Global stocks fell $1.3T as AI trade reverses, impacting tech stocks. Market signals show a 97% NO on a rebound in tech by year-end.
Tata Electronics resorts to older tech to launch its chip foray
Tata Electronics is preparing to build India’s first large-scale chip fab mostly based on 90-nm process technology, one which risks becoming obsolete in coming years.
The Elon Musk “Mystery Metal” That Could Break China's Grip
quietly engineered by Elon Musk… could end that crisis forever. And one tiny company is sitting at the center of it all. Musk is expected to make an announcement any day now. See more about this secret project here.