Wall St slips at open after inflation data; Nvidia in focus - WTVB

On August 26, 2024, U.S. stock indexes opened lower amid hotter-than-expected inflation data, reinforcing expectations for another 25 basis point Federal Reserve rate hike this year. Investors were al... Read original →

Hot inflation data intensified expectations for another 25 basis point Fed rate hike, pressuring the semiconductor sector, with NVIDIA’s earnings under close scrutiny. Technologically, 3nm and EUV processes face demand uncertainty, exacerbating supply chain bottlenecks. TSMC, as a key player in global chip manufacturing, plays a pivotal role in shaping AI compute availability. Geopolitical tensions, especially in the U.S.-China tech rivalry, are raising compliance costs and supply chain risks for firms. Competitors may accelerate in-house R&D or diversify suppliers to reduce reliance on key vendors. Over the next 12–24 months, the industry is entering a phase of technological reshuffling and market consolidation, with potential slowdown in AI chip demand leading to reduced capex and intensified competition.