Breakfast News: Chips Are Hot, Phones Are Not
Taiwan Semiconductor Manufacturing (NYSE:TSM) just booked its sixth straight quarter of record profit. The world’s largest contract chipmaker builds the advanced processors most of the tech industry designs but doesn’t make. Third-quarter revenue topped management’s guidance while net income jumped 69% to a record NT$763.1 billion (about $23.9 billion). The broader sell-off in artificial intelligence (AI) stocks still sent the Team Hidden Gems recommendation down over 1% ahead of the open.
Rocket Lab’s (NASDAQ:RKLB) big rocket isn’t taking off just yet. On Wednesday, it said Neutron’s first flight has slipped to 2027. Neutron is a reusable medium-lift rocket that lets Rocket Lab bid for larger commercial, civil-space, and national-security contracts than its small Electron can carry. The Team Hidden Gems recommendation fell 10% in pre-market trading.
Global chip stocks are selling off as investors question whether the AI-driven rally has overextended. CoreWeave (NASDAQ:CRWV) fell 15% Wednesday after the yield on its 2032 bonds touched 15%. Its debt had reached about $52 billion in June, up from about $15 billion a year earlier. The selling spread across AI stocks. Nvidia (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO) and Intel (NASDAQ:INTC) all closed more than 3% lower Wednesday and were down at least 1% before Thursday’s open.
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