WS #15586
The AI sector is experiencing a divergence: TSMC reported record Q3 revenue of $46.7 billion, validating the underlying infrastructure demand, while OpenAI's firing of safety researchers has triggered a selloff in AI-related equities. Analysts are also upgrading Micron, arguing the market is mispricing AI memory demand as a commodity, suggesting that while sentiment is fragile, the fundamental hardware cycle remains strong. Apple has instructed suppliers to reduce October component orders for the iPhone 18 Pro by at least 15-20%, citing weakening consumer demand and higher memory costs. This supply cut serves as a tangible confirmation of demand destruction in the premium smartphone market, challenging the broader tech sector's growth assumptions and pressuring the supply chain.
AI Sector Turbulence
The AI sector is experiencing a divergence: TSMC reported record Q3 revenue of $46.7 billion, validating the underlying infrastructure demand, while OpenAI's firing of safety researchers has triggered a selloff in AI-related equities. Analysts are also upgrading Micron, arguing the market is mispricing AI memory demand as a commodity, suggesting that while sentiment is fragile, the fundamental hardware cycle remains strong.
Apple has instructed suppliers to reduce October component orders for the iPhone 18 Pro by at least 15-20%, citing weakening consumer demand and higher memory costs. This supply cut serves as a tangible confirmation of demand destruction in the premium smartphone market, challenging the broader tech sector's growth assumptions and pressuring the supply chain.