Chip Stocks Slide, Alphabet Plans Bond Sale, SoftBank Beats as Vision Fund Plummets
Global markets faced a cautious start on Thursday as investors weighed a mix of corporate earnings, monetary policy signals, and geopolitical developments. Pre-market trading indicated a decline in memory chip stocks, with SK Hynix tumbling over 5% and SanDisk dropping more than 8%. This continued sell-off underscores growing anxieties about the sustainability of AI-related capital expenditures and the potential for oversupply in the semiconductor industry.
In a significant policy development, sources reported that Federal Reserve Governor Christopher Waller is prepared to advocate for a September interest rate increase if inflation data over the coming weeks remains robust. This hawkish stance coincides with Alphabet's announcement of a $25 billion bond sale, a move that ignores widespread worries about AI spending but signals the company's confidence in its growth prospects. The bond issuance contributed to a sharp rise in long-end Treasury yields, as investors adjusted to the possibility of tighter monetary policy.
On the corporate front, Unitree Robotics has set its IPO price at 150.8 yuan per share, a major milestone for the robotics sector. Strategic investors such as DeepSeek and Tencent have been allocated shares, highlighting the integration of AI and robotics. DeepSeek also revealed its intention to substantially raise API service prices, a decision that could affect a wide range of AI developers. SoftBank reported a net profit that comfortably exceeded analysts' forecasts, largely due to an $8.5 billion gain from its investment in Intel. However, its Vision Fund experienced a 99% decline in profits, reflecting the high-risk nature of its technology investments and the current market volatility.
In terms of financial flows, Goldman Sachs and JPMorgan have both doubled their positions in Zhongji Innolight H-shares, indicating strong confidence in the company's role in the AI supply chain. Apple is reportedly making urgent DRAM memory purchases with the iPhone 18 launch only weeks away, suggesting that it is securing key components amid tight supply. OpenAI has also filed a motion to dismiss Apple's trade secret lawsuit, dismissing the allegations as without merit.
Asian equity markets concluded the session with mixed results. Japan's Nikkei 225 fell 0.93% as technology stocks struggled, while China's Shanghai Composite gained 0.57% on optimism about policy support. Hong Kong's Hang Seng declined 1.49%, hurt by weakness in property and internet shares.