WS #15870
A 3.7% YoY CPI reading has forced a repricing of rate expectations, causing a sharp sell-off in rate-sensitive growth stocks. Nvidia, AMD, Oracle, and Dell all posted significant declines as investors rotated capital into healthcare and staples. While the macro environment is hostile to high multiples, underlying AI demand remains robust, with ASML reporting a 55% sales surge that masks a severe capacity squeeze extending into 2029. Amidst the macro sell-off, semiconductor fundamentals remain exceptionally strong. ASML reported a 55% year-over-year sales increase, with CFO guidance indicating that Chinese demand will remain strong as new fabs come online. Concurrently, Japan has committed $21 billion to two US chip factories run by GlobalFoundries, signaling deepening allied cooperation in semiconductor manufacturing to secure supply chains against geopolitical fragmentation.
CPI and Tech Rotation
A 3.7% YoY CPI reading has forced a repricing of rate expectations, causing a sharp sell-off in rate-sensitive growth stocks. Nvidia, AMD, Oracle, and Dell all posted significant declines as investors rotated capital into healthcare and staples. While the macro environment is hostile to high multiples, underlying AI demand remains robust, with ASML reporting a 55% sales surge that masks a severe capacity squeeze extending into 2029.
Amidst the macro sell-off, semiconductor fundamentals remain exceptionally strong. ASML reported a 55% year-over-year sales increase, with CFO guidance indicating that Chinese demand will remain strong as new fabs come online. Concurrently, Japan has committed $21 billion to two US chip factories run by GlobalFoundries, signaling deepening allied cooperation in semiconductor manufacturing to secure supply chains against geopolitical fragmentation.