WS #15927
The tech sector is facing a severe correction as investors question the sustainability of AI capex, particularly for highly leveraged players like CoreWeave, whose debt yields have spiked to ~15%. This funding anxiety is driving a broad semiconductor and tech selloff, despite TSMC reporting record profits driven by robust AI chip demand. The divergence between hardware profitability and software/cloud financing costs is forcing a re-rating of high-multiple tech stocks, with Seagate outperforming Western Digital as storage demand remains strong while broader AI infrastructure spending slows.
AI Funding & Semiconductor Rout
The tech sector is facing a severe correction as investors question the sustainability of AI capex, particularly for highly leveraged players like CoreWeave, whose debt yields have spiked to ~15%. This funding anxiety is driving a broad semiconductor and tech selloff, despite TSMC reporting record profits driven by robust AI chip demand. The divergence between hardware profitability and software/cloud financing costs is forcing a re-rating of high-multiple tech stocks, with Seagate outperforming Western Digital as storage demand remains strong while broader AI infrastructure spending slows.