To The Moon

I started this rabbit hole looking at GPUs. Somehow I ended up researching zinc refineries. Welcome back to ADZ5150. 😂🐅 Everyone knows the AI arms race. NVIDIA GPUs. Hyperscaler capex. Gigawatt data centres. Power shortages. Memory. Cooling. But something caught my attention. In March, NVIDIA announced a US$2 billion investment in Lumentum. On the exact same day, it announced another US$2 billion investment in Coherent. US$4 BILLION. Not into another AI model. Not another GPU company. Into companies that make lasers and optical technology. And both agreements went beyond investments. They included multibillion-dollar purchase commitments and future access to manufacturing capacity. That made me ask the obvious GAZADZ question: 🐇 WHY DOES THE WORLD’S MOST IMPORTANT AI CHIP COMPANY CARE SO M

Singapore Stocks Barely Fell — So Why Did 276 Stocks Drop? | SGX Market Close. https://youtu.be/eirPcWWdsLU

Why is TSMC still trading so low

Recent financial disclosures revealed a glaring dichotomy in the technology sector: TSMC delivered record-breaking quarterly net profits driven by insatiable demand for advanced 3nm and 5nm nodes, but we saw selloff last week from AI hardware names. In this article, we would like to look at the factors and catalysts that is contributing to this silicon paradox. 1. The Surface Paradox: Record Profits vs. Market Sell-Off When $Taiwan Semiconductor Manufacturing(TSM)$ reported its latest quarterly financial results, the figures exceeded even the most bullish consensus estimates. Gross margins expanded beyond key guidance thresholds, operating margins hit historical highs, and revenue derived from High-Performance Computing (HPC)—which encapsulates AI

The strongest evidence would be sustained growth in AI-related revenue and free cash flow that outpaces the growth in AI capex. Revenue growth alone is not enough. Companies can generate more AI sales while spending even faster on GPUs, data centres and power. I would look for rising utilisation of AI infrastructure, improving operating margins and, ultimately, higher free cash flow and ROIC. If hyperscalers can show that each additional dollar of AI investment is producing growing incremental cash returns, the spending cycle becomes much easier to justify. For me, improving ROIC alongside accelerating free cash flow would be the clearest sign that AI capex is creating economic value rather than simply fuelling an expensive infrastructure race.

I would focus on TSMC’s capacity execution and Nvidia’s order trajectory rather than wait for perfect clarity on AI capex returns. TSMC’s strong revenue, profit and 58.7% operating margin suggest AI demand is still translating into real earnings, not merely investment promises. Higher capex is therefore not automatically bearish if new capacity remains highly utilised and generates attractive returns. The bigger risk is downstream. If hyperscalers keep spending heavily but AI monetisation fails to catch up, Nvidia orders could eventually weaken and TSMC’s new capacity could face lower utilisation. I would watch three signals closely: Nvidia order growth, TSMC advanced-node utilisation and hyperscaler AI returns. As long as all three remain healthy, the AI semiconductor thesis remains credi

B. the party is just starting.

look tsla

For me, it’s sustainable free cash flow growth. 💰 Revenue growth is encouraging, but AI companies need to show that the money invested in chips, data centres and power is generating real returns. Spending billions is easy to announce; proving it pays off is the real test. 📊

🅲 I’d be selective. AI still has huge potential, but some stocks may have already priced in years of growth. TSMC’s strong earnings are encouraging, yet investors also need to watch rising costs and valuations. I’d rather own companies that can prove their growth through real profits than chase every stock riding the AI wave.

The market: hotter producer prices moved money out of technology and into value sectors $SPDR S&P 500 ETF Trust(SPY)$ rose 0.28 per cent to US$771.79 on Thursday, while $Invesco QQQ(QQQ)$ fell 0.13 per cent to US$728.00. September PPI increased 1.3 per cent from the previous month, above the market's 0.6 per cent expectation and faster than August's 0.4 per cent rise. Wholesale inflation reached 6.3 per cent from a year earlier, with energy prices the main driver. Renewed upstream price pressure reduced expectations for rate cuts and highly valued technology shares. The broad market did not fall with technology because money moved towards financials, consumer companies an

Record profits are impressive. Turning record investment into sustainable returns is the bigger challenge. TSMC just reported a record quarterly net profit of NT$763.1 billion, up 68.7% year over year. Revenue climbed 50.9% to NT$1.49 trillion, while operating margin reached 58.7%, beating guidance. The company also forecast Q4 revenue of US$52.3–54.3 billion. Yet TSMC and Nvidia shares fell.  Why the disconnect? 1. Strong demand is not the same as guaranteed returns. TSMC is benefiting from demand for advanced chips, but its customers must still justify the enormous cost of building AI infrastructure. If AI revenue grows more slowly than computing costs, spending plans could eventually be reconsidered. 2. The investment bill keeps rising. TSMC expects 2026 capital expenditure of US$60–64

C — Strong AI demand doesn’t mean every AI stock is worth buying at any price. TSMC’s record profits and upbeat guidance show the demand is real, but rising capex, valuation risks and uncertainty over future returns matter too. I’d focus on companies that can turn AI spending into sustainable earnings and cash flow, rather than chasing the hype.

$Taiwan Semiconductor Manufacturing(TSM)$  delivered another blockbuster quarter. Yet TSMC and $NVIDIA (NVDA)$ fell as investors continued selling semiconductor stocks. If AI demand is so strong, why isn’t the market celebrating? 📊 1. The numbers are impressive TSMC’s third-quarter 2026 results showed just how powerful the AI chip boom has become: 🔥 Revenue reached NT$1.494 trillion, up 50.9% year over year. 🔥 Net profit hit NT$763.1 billion, up 68.7%. 🔥 Operating margin reached 58.7%. 🔥 Fourth-quarter revenue guidance came in at US$52.3–54.3 billion, above the previous quarter’s level. These aren’t the numbers of a business experiencing an obvious demand collapse. TSMC continues to benefit from demand for advanced chips used in AI infras

🅲 It depends. I'd be more selective about which AI stocks I own. TSMC’s results reveal an important distinction: AI demand can remain strong while stocks deliver disappointing returns. Revenue surged 41%, profits hit a record, and fourth-quarter guidance exceeded expectations. Yet the stock fell. Investors now want proof that massive AI investments can generate sustainable returns. The risk isn't that AI demand disappears, but that expectations and valuations have risen so high that even excellent earnings may disappoint. AI infrastructure companies also face rising costs and uncertain returns. I'd favor businesses with strong cash flows, pricing power, and visible earnings growth over companies relying on debt and distant profit projections. My view: AI remains a long-term opportunity, bu

I would choose C. I believe AI demand is still strong, but the market is becoming more selective about valuations, profitability, and how much future growth is already priced in. TSMC delivered excellent results and raised its outlook, yet the stock still fell as investors questioned whether current AI spending levels are sustainable. For me, strong earnings alone are not enough. I want to see companies turn AI demand into sustainable revenue, earnings growth, and cash flow. Semiconductor companies may benefit from the long-term AI trend, but their valuations and execution risks differ, so I would not treat every AI stock equally. I will continue focusing on companies with solid fundamentals and long-term growth potential, while using pullbacks to accumulate gradually rather than chasing

TSMC delivered a clear beat-and-raise quarter but fell with the broader chip sector. Charles Schwab also declined as a small net-interest-margin miss overshadowed record asset gathering. After the bell, rising costs hit J.B. Hunt, while Interactive Brokers’ dividend increase failed to produce a rally. $Taiwan Semiconductor Manufacturing(TSM)$ lost 1.8% TSMC is the world’s largest contract chipmaker and manufactures advanced processors for Nvidia, Apple and other technology companies. Third-quarter revenue jumped 41% to $46.72 billion, beating the $45.67 billion consensus. EPS of $4.60 per ADR topped the $4.46 estimate, while net income surged 69% to a record NT$763.1 billion. Advanced nodes accounted for 79% of wafer revenue, including an 8% contri

TSMC’s results make me reluctant to cut semiconductor exposure after the sell-off. Record profit and strong guidance suggest the underlying AI chip demand story remains intact, even if valuations and higher rates are creating much more volatility. Among the choices, I would favour Nvidia first. TSMC’s strong leading-edge demand supports the view that AI accelerator spending has not collapsed. AMD is worth watching, but I would want clearer evidence that its order growth and market-share gains are translating into sustained earnings before becoming more aggressive. The bigger caution is SOXL. A 13% one-day fall shows how quickly 3x leverage can punish investors when semiconductor sentiment turns. Even if the long-term AI thesis remains intact, leveraged ETFs add another layer of timing risk

A single-day plunge of ~13% in the Direxion Daily Semiconductor Bull 3X Shares (SOXL) illustrates the extreme structural amplification inherent in 3x daily leveraged ETFs. While major anchor components like Taiwan Semiconductor Manufacturing Company (TSMC) may exhibit operational resilience, strong fundamentals alone cannot insulate the semiconductor sector during systemic market pullbacks. In this article, we would like to discuss what are the key drivers behind SOXL’s de-risking and potential catalysts for recovery. 1. The Leverage Architecture: Unpacking a 13% Single-Day Decline To comprehend a severe ~13% daily decline in SOXL, one must first dissect the structural mechanics of the underlying exchange-traded product. SOXL aims to deliver 300% (3x) of the single-day price performance of

Disclaimer: Nothing I say or post should be considered financial advice. Please do your own due diligence before making any investment decisions.‌ $Technology Select Sector SPDR Fund(XLK)$ $Roundhill Memory ETF(DRAM)$ $VanEck Semiconductor ETF(SMH)$ $Utilities Select Sector SPDR Fund(XLU)$ $Communication Services Select Sector SPDR Fund(XLC)$ So the real bloothbath finally started today, with 80 billion dollars wiped out from the AI sector in a single day. The sector did bounce back a little towards end of trading day, but could this be a start of a bearish momentum carrying into en

I started this rabbit hole looking at GPUs. Somehow I ended up researching zinc refineries. Welcome back to ADZ5150. 😂🐅 Everyone knows the AI arms race. NVIDIA GPUs. Hyperscaler capex. Gigawatt data centres. Power shortages. Memory. Cooling. But something caught my attention. In March, NVIDIA announced a US$2 billion investment in Lumentum. On the exact same day, it announced another US$2 billion investment in Coherent. US$4 BILLION. Not into another AI model. Not another GPU company. Into companies that make lasers and optical technology. And both agreements went beyond investments. They included multibillion-dollar purchase commitments and future access to manufacturing capacity. That made me ask the obvious GAZADZ question: 🐇 WHY DOES THE WORLD’S MOST IMPORTANT AI CHIP COMPANY CARE SO M

Recent financial disclosures revealed a glaring dichotomy in the technology sector: TSMC delivered record-breaking quarterly net profits driven by insatiable demand for advanced 3nm and 5nm nodes, but we saw selloff last week from AI hardware names. In this article, we would like to look at the factors and catalysts that is contributing to this silicon paradox. 1. The Surface Paradox: Record Profits vs. Market Sell-Off When $Taiwan Semiconductor Manufacturing(TSM)$ reported its latest quarterly financial results, the figures exceeded even the most bullish consensus estimates. Gross margins expanded beyond key guidance thresholds, operating margins hit historical highs, and revenue derived from High-Performance Computing (HPC)—which encapsulates AI

Singapore Stocks Barely Fell — So Why Did 276 Stocks Drop? | SGX Market Close. https://youtu.be/eirPcWWdsLU

Why is TSMC still trading so low

Disclaimer: Nothing I say or post should be considered financial advice. Please do your own due diligence before making any investment decisions.‌ $Technology Select Sector SPDR Fund(XLK)$ $Roundhill Memory ETF(DRAM)$ $VanEck Semiconductor ETF(SMH)$ $Utilities Select Sector SPDR Fund(XLU)$ $Communication Services Select Sector SPDR Fund(XLC)$ So the real bloothbath finally started today, with 80 billion dollars wiped out from the AI sector in a single day. The sector did bounce back a little towards end of trading day, but could this be a start of a bearish momentum carrying into en

📉🐶 Every Plunge Is an Opportunity? My Take on SOXL, TSMC and QQQ 🐶 1️⃣ Every Plunge Is an Opportunity — But Only If Earnings Can Hold Up When I see semiconductor stocks plunge, I don’t automatically assume the AI story is over. Sometimes, the market is simply repricing growth stocks because inflation is hotter than expected, interest rates may stay higher for longer, or investors are becoming nervous about how much money companies are spending on AI. But I always ask myself one important question: Are company earnings deteriorating, or is the market simply becoming more fearful? If earnings expectations remain strong, a sharp price decline can create an opportunity to buy quality companies at a more attractive valuation. However, if earnings forecasts are being cut, a stock can continue fa

TSMC delivered a clear beat-and-raise quarter but fell with the broader chip sector. Charles Schwab also declined as a small net-interest-margin miss overshadowed record asset gathering. After the bell, rising costs hit J.B. Hunt, while Interactive Brokers’ dividend increase failed to produce a rally. $Taiwan Semiconductor Manufacturing(TSM)$ lost 1.8% TSMC is the world’s largest contract chipmaker and manufactures advanced processors for Nvidia, Apple and other technology companies. Third-quarter revenue jumped 41% to $46.72 billion, beating the $45.67 billion consensus. EPS of $4.60 per ADR topped the $4.46 estimate, while net income surged 69% to a record NT$763.1 billion. Advanced nodes accounted for 79% of wafer revenue, including an 8% contri

A single-day plunge of ~13% in the Direxion Daily Semiconductor Bull 3X Shares (SOXL) illustrates the extreme structural amplification inherent in 3x daily leveraged ETFs. While major anchor components like Taiwan Semiconductor Manufacturing Company (TSMC) may exhibit operational resilience, strong fundamentals alone cannot insulate the semiconductor sector during systemic market pullbacks. In this article, we would like to discuss what are the key drivers behind SOXL’s de-risking and potential catalysts for recovery. 1. The Leverage Architecture: Unpacking a 13% Single-Day Decline To comprehend a severe ~13% daily decline in SOXL, one must first dissect the structural mechanics of the underlying exchange-traded product. SOXL aims to deliver 300% (3x) of the single-day price performance of

The market: hotter producer prices moved money out of technology and into value sectors $SPDR S&P 500 ETF Trust(SPY)$ rose 0.28 per cent to US$771.79 on Thursday, while $Invesco QQQ(QQQ)$ fell 0.13 per cent to US$728.00. September PPI increased 1.3 per cent from the previous month, above the market's 0.6 per cent expectation and faster than August's 0.4 per cent rise. Wholesale inflation reached 6.3 per cent from a year earlier, with energy prices the main driver. Renewed upstream price pressure reduced expectations for rate cuts and highly valued technology shares. The broad market did not fall with technology because money moved towards financials, consumer companies an

ASML Earnings Review: Profits Doubled, but Will Wall Street Wait Until 2027? $ASML Holding NV(ASML)$   delivered strong Q3 2026 results, with revenue jumping 55% YoY and net profit more than doubling. The company also raised its full-year guidance for the third time this year, reinforcing confidence in the AI-driven semiconductor equipment cycle. However, investment gains boosted reported profits, while the equipment revenue mix deserves closer scrutiny. More importantly, investors may have to wait until June 2027 for an updated long-term financial outlook, even as demand threatens to exceed ASML's planned capacity through 2028. Core Financial Indicators – Q3 revenue reached €11.66 billion, up 55% YoY and 2

Semiconductor giants $Taiwan Semiconductor Manufacturing(TSM)$ TSMC and $ASML Holding NV(ASML)$ ASML release their Q3 earnings, market attention focuses on whether corporate AI capital expenditure (Capex) remains structurally durable. In this article, we would like to share how investors can look out for the signals that TSMC and ASML earnings is giving for the AI Capex reality check. 1. Macro Backdrop: The Global AI Capex Expansion The technology sector’s multi-year rally has been underwritten by an unprecedented surge in capital spending among hyperscale cloud providers (Microsoft, Alphabet, Amazon, and Meta). Total AI-related Capex is projected to surpass $200 billion annually as tech leaders compete to

The market: inflation returned as AI hardware faced both rate and earnings pressure The $S&P 500(.SPX)$ fell 1.11 per cent to 7,718.94 on Wednesday, while $Invesco QQQ(QQQ)$ lost 1.97 per cent to close at US$728.95. Headline CPI rose 3.7 per cent from a year earlier in September, above the market's 3.6 per cent expectation and August's 3.4 per cent reading. The return of inflation pushed rate expectations higher, and technology fell substantially more than the broader market. As rate expectations move higher, the present value of future earnings falls; the more a share price depends on growth further into the future, the greater the valuation pressure. AI hardware also f

Semiconductor stocks have just endured another uncomfortable reset. Memory names have fallen sharply. Asian chip stocks sold off again. Concerns around China's semiconductor progress have returned. Meanwhile, investors are increasingly questioning whether the enormous AI capex cycle can continue at the same pace. Now ASML reports. For me, this is one of the most important semiconductor reports of the quarter. Not because ASML tells us what happened during the last three months. It can tell us what the world's biggest chipmakers expect to need 12 to 18 months from now. That makes ASML's order book more important than the headline EPS number. The Number I Care About Most: Bookings ASML sits unusually far upstream. TSMC, Samsung, Intel, SK Hynix and Micron cannot simply decide to produce subs

$Taiwan Semiconductor Manufacturing(TSM)$  delivered another blockbuster quarter. Yet TSMC and $NVIDIA (NVDA)$ fell as investors continued selling semiconductor stocks. If AI demand is so strong, why isn’t the market celebrating? 📊 1. The numbers are impressive TSMC’s third-quarter 2026 results showed just how powerful the AI chip boom has become: 🔥 Revenue reached NT$1.494 trillion, up 50.9% year over year. 🔥 Net profit hit NT$763.1 billion, up 68.7%. 🔥 Operating margin reached 58.7%. 🔥 Fourth-quarter revenue guidance came in at US$52.3–54.3 billion, above the previous quarter’s level. These aren’t the numbers of a business experiencing an obvious demand collapse. TSMC continues to benefit from demand for advanced chips used in AI infras

The indices: barely moved, but chips and memory went in opposite directions The three indices were nearly flat on Tuesday: the $S&P 500(.SPX)$ fell 0.02 per cent to 7,805.45; the $NASDAQ(.IXIC)$ fell 0.15 per cent to 27,204.38; and the $Dow Jones(.DJI)$ fell 0.35 per cent to 51,670.10. The 10-year Treasury yield eased from 5.24 per cent to 5.22 per cent. The compute chips that had been falling since last Thursday bounced: $NVIDIA(NVDA)$ rose 0.97 per cent to US$228.52 and AMD rose 1.90 per cent to US$605.53, with the specific AMD driver in the next sect

What if the biggest risk for semiconductor investors isn’t falling chip demand, but paying too much for future growth? The recent sell-off has put semiconductor stocks under pressure. $Direxion Daily Semiconductor Bull 3X Shares (SOXL)$ plunged 13.35%, while its bearish counterpart, $Direxion Daily Semiconductor Bear 3X Shares (SOXS)$, surged 13.63%. Hotter-than-expected US inflation, rising interest-rate concerns and questions about the returns on AI investment have all contributed to the nervousness. But there’s an important distinction: a correction in chip stocks doesn’t automatically mean the semiconductor industry is losing its growth potential. 🔍 1. TSMC delivers the numbers — but what comes next? $Taiwan Semiconductor Manufacturing (TSM)$ has reported record third-quarter net profi

Asian semiconductor stocks suffered a sharp selloff today. SK hynix dropped roughly 10%, Samsung Electronics fell 7.4%, South Korea’s KOSPI declined more than 5%, and Japan’s Kioxia also saw double-digit losses. What makes this interesting is that AI memory demand has not suddenly disappeared. Instead, investors are reacting to a potential shift in the global memory supply landscape, driven partly by a technological breakthrough from China. On October 12, Chinese memory manufacturer CXMT (ChangXin Memory Technologies) disclosed progress in its next-generation 4F² DRAM cell architecture, with plans to introduce server memory products using the technology by the end of this year. Compared with the industry’s mainstream 6F² structure, the new architecture could potentially increase memory den

The Terafab headline looks bullish for TSMC and uncomfortable for Intel. But I think the market may be simplifying the story too much. TSMC closed at a record $485.80, up 2.75%, after Elon Musk confirmed that Tesla is in early discussions with TSMC regarding his enormous Terafab chip-manufacturing ambition. Intel fell 2.63% to $116.19. SpaceX jumped 7.63% to $171.09. The immediate interpretation is obvious: TSMC wins. Intel loses. Musk gets his chips. I think reality is more interesting. Terafab could become so enormous that the ultimate winner isn't necessarily whichever foundry gets the project. It could be the company that becomes indispensable to the entire ecosystem. And right now, that still looks like TSMC. What Musk Actually Confirmed Terafab is Musk's vision for semiconductor manu

The indices: the Dow outran the Nasdaq for the third session in a row All three indices split again on Monday: the $Dow Jones(.DJI)$ rose 0.38 per cent to 51,850.55; the $S&P 500(.SPX)$ fell 0.06 per cent to 7,807.24, essentially flat; and the $NASDAQ(.IXIC)$ fell 0.44 per cent to 27,245.90. The 10-year Treasury yield stayed at 5.24 per cent, unchanged from Friday. Monday was the third consecutive session in which the Dow outperformed the Nasdaq. Nvidia fell 1.29 per cent to US$226.32 and AMD fell 2.28 per cent to US$594.24, extending the declines that began last Thursday on the OpenAI revenue report. Memory st

Two semiconductor giants. Two earnings reports. One question hanging over the AI trade: How much more growth can the market realistically expect? $ASML Holding(ASML)$ reports on October 14, followed by $Taiwan Semiconductor Manufacturing(TSM)$ on October 15. Both are crucial to understanding whether AI infrastructure spending can continue supporting semiconductor growth.  But I’m watching more than whether they beat earnings estimates. 🔬 1. ASML: Are chipmakers still willing to spend? ASML makes the advanced lithography equipment required to manufacture cutting-edge semiconductors. Its extreme ultraviolet (EUV) systems are particularly important for producing advanced chips. In July, ASML raised its 2026 revenue outlook to €43 billion–€45 billion and said customer demand remained strong.