TSMC posts record profit; markets await retail sales and earnings data
TSMC achieved a record profit, according to the report. Market attention is now turning to upcoming retail sales and earnings figures.
Why it matters: The story is covered by Yahoo Finance as part of what's moving markets.
TSMC Stock Slides Despite Crushing Q2 Estimates With Fifth Straight Record Profit
TSMC reported Q2 net income of NT$706.56 billion ($22 billion), up 77.4% year-over-year and well above the NT$632.64 billion consensus estimate, marking its fifth consecutive quarter of record profit. Revenue reached NT$1.27 trillion ($39.45 billion), up 36% from last year's NT$933.79 billion, with advanced 7nm-and-below technologies accounting for 77% of total wafer revenue driven by AI demand from Nvidia, Apple, and Broadcom.
Why it matters: Despite the results, TSMC shares fell 3.76% to $403.71 in premarket trading; the company forecast Q3 revenue of $44.6-$45.8 billion with gross margins of 65-67%.
Nasdaq Set for Lower Open as Chip Stocks Face Pressure
The Nasdaq is expected to open lower as chip stocks come under pressure. Market participants are monitoring the impact of this decline on broader indices.
Why it matters: The story is based on live updates from the Wall Street Journal.
Prediction: Micron Stock Will Hit $1,875 by Late 2027
Motley Fool analyst Trevor Jennewine predicts Micron (MU) will reach $1,875 per share after fiscal 2027 results in September 2027, implying roughly 91% upside from the current price of $982. Micron's stock has surged nearly 700% over the past year, fueled by an unprecedented AI-driven memory chip shortage that drove Q3 fiscal 2026 revenue up 345% and non-GAAP net income over 1,200%.
Why it matters: The article acknowledges the memory chip industry's historical boom-and-bust cycle, noting that oversupply in 2023 caused NAND and DRAM prices to plunge ~70%, raising questions about whether the current AI boom can sustain beyond the cycle.
Why AMD Stock Is Falling Premarket Today Despite Fresh Price Target Hikes
AMD stock dropped more than 2.5% in premarket trading after TSM raised its 2026 capital expenditure forecast to $60–64 billion from $52–56 billion, sparking concerns about unsustainable AI industry spending. Despite the selloff, UBS raised its AMD price target to $700 from $670 with a Buy rating, while Rosenblatt lifted its target to $665 from $490 and named AMD its top semiconductor long idea ahead of earnings in early August.
Why it matters: Wall Street optimism is further buoyed by AMD's upcoming AI Day event on July 22–23 in San Francisco, though the 12-month average analyst price target of $536.36 implies only about 1% upside from the last close.
Why Is TSM Stock Dipping Premarket Despite Strong Q2 Beat And Outlook?
TSM posted Q2 revenue of $39.44 billion (NT$1.27 trillion) and diluted EPS of NT$27.25, both beating Wall Street estimates, with Q3 revenue guidance of $44.6B–$45.8B reflecting 37% year-over-year growth. The stock dropped ~2% in premarket trading as investors digested a roughly 15% increase in the 2026 capital expenditure forecast to $60B–$64B, raising concerns about rising costs and pressure on long-term returns.
Why it matters: TSM warned that overseas factory expansion could dilute gross margins by 2–3% in the early ramp-up stages and 3–4% in later stages, adding to near-term profitability concerns despite strong AI-driven demand.
Asian stocks mostly sink as AI worries hammer tech
Most Asian stocks fell sharply on Thursday as renewed AI valuation concerns triggered heavy selling in tech, with Seoul's KOSPI diving over 6% and SK hynix shedding more than 11%. Analysts warned the AI trade had become too crowded—the Philadelphia Semiconductor Index had risen roughly 83% year-to-date—meaning even strong earnings like TSMC's record Q2 profit and ASML's raised forecast couldn't prevent a correction.
Why it matters: Hong Kong was the regional outlier, climbing over 1% on Chinese chip stocks, while Tokyo, Shanghai, Singapore, and Wellington also dropped; European markets in London, Frankfurt, and Paris fell as well despite Wall Street's previous day gains.
TSMC and AI stocks fall despite strong earnings as investor concerns mount
Shares of TSMC and other AI-related stocks declined even after the company reported upbeat earnings. The drop suggests underlying investor worries that are not fully offset by positive financial results.
3 Cash-Producing Stocks We Keep Off Our Radar
StockStory's Jabin Bastian profiles three cash-generating companies the firm avoids: Revolve (RVLV), Kraft Heinz (KHC), and Fiserv (FISV). Revolve's 3.9% FCF margin masks slow customer growth (5.8%), heavy marketing spend, and only 7.5% annual EPS growth over three years.
Why it matters: Kraft Heinz's 15.8% FCF margin can't offset shrinking unit sales, a projected 2.2% sales decline, and falling operating profits, while Fiserv's 22% FCF margin is undermined by sluggish 4.1% revenue growth and a low 9.6% ROE.
3 Cash-Producing Stocks That Concern Us
StockStory flags Dillard's (DDS), BJ's Wholesale Club (BJ), and Werner (WERN) as cash-generating companies with concerning fundamentals despite producing free cash flow. Dillard's faces stagnation with no new store openings, declining same-store sales, and EPS contracting 8.9% annually over three years, trading at 15.5x forward P/E.
Why it matters: BJ's Wholesale Club is constrained by low 1% FCF margins, commoditized inventory limiting gross margins to 18.5%, and sluggish 4% revenue growth, while Werner posts 2.3% annual sales declines and a 44.6% annual EPS drop over five years.
Wall Street Stock Picks: Two Favorites and One to Avoid
The article from Yahoo Finance highlights two Wall Street favorite stocks with exciting potential. It also identifies one stock that the author advises avoiding.
Why it matters: No specific stock names or details are provided in the headline or summary.
2 of Wall Street's Favorite Stocks with Exciting Potential and 1 We Avoid
StockStory analyzes three stocks with consensus price targets implying 20%+ upside, recommending two buys and one sell. Magnolia Oil & Gas (MGY) and Patterson-UTI (PTEN) are highlighted for strong revenue growth, solid profitability, and attractive valuations at 9.7x and 4.9x forward multiples respectively.
Why it matters: Flex (FLEX) is flagged as a sell despite a 25.1% implied return, citing sluggish 2.8% revenue growth, no free cash flow, and an expensive 29.6x forward P/E.
Emerging Markets Selloff Intensifies as South Korea Trading Restrictions Worsen Chip Stock Decline
Emerging-market stocks dropped sharply as South Korea's trading curbs exacerbated a selloff in chip giants. The slump was driven by a broad decline in semiconductor shares, which weighed on regional markets.
Why it matters: This market impact is under review as a follow-up on the wider implications for emerging markets.
Coca-Cola Raises Dividend for 64th Consecutive Year, Yielding 2.55%
Coca-Cola (KO) raised its quarterly dividend 4% to $0.53 in February 2026, marking the 64th straight year of increases and cementing its Dividend King status. The stock yields 2.55%, more than double the S&P 500's yield, and has returned nearly $102 billion to shareholders via dividends since 2010.
Why it matters: However, the article cautions that Coca-Cola is a mature company with limited growth potential and has lagged the S&P 500 over the past decade with a 152% total return.
Morningstar Reveals Top Q3 Stock Picks Across US Sectors
Morningstar published its sector outlook and top picks for the third quarter. The report covers stocks across the US market.
Why it matters: This item is imported from RSS and awaits further analysis on market impact.
Stock futures mixed ahead of Netflix earnings
Dow, S&P 500, and Nasdaq futures were mixed in pre-market trading. Investors are awaiting Netflix earnings results for market direction.
Taiwan Semiconductor beats Q2 targets on strong leading-edge chip demand
Taiwan Semiconductor Manufacturing Co. exceeded its second-quarter targets, driven by demand for leading-edge chips. The company's performance highlights ongoing strength in the semiconductor sector.
Oracle at 52-Week Lows Considered a Strong Buy
Oracle shares have reached their 52-week lows. A Seeking Alpha article calls it a can't-miss buying opportunity.
Trump promoted companies on Truth Social days after stock purchases
A CNN report reveals that Donald Trump promoted specific companies on his Truth Social platform shortly after buying their stocks. The timing of these promotions raises questions about potential conflicts of interest and market influence.
U.S. stock futures decline amid renewed AI uncertainty
U.S. stock futures fell due to fresh concerns in the AI sector. The decline was reported by the Wall Street Journal.