New Front in Chip Crisis: TSMC and Netflix's Drop Shakes Markets

Investors are witnessing a global sell-off triggered by TSMC's 7.29% and Netflix's 9.29% declines. Japan's Nikkei 225 and South Korea's KOSPI indices fell 4.03% and 6.37% respectively, as overconfidence in the chip sector crumbled. South Korea's market is particularly sensitive due to its heavy weighting on Samsung and SK Hynix. US chipmakers Intel, Micron, AMD, and Marvell also continued their downward trend.

Markets are reacting to this with concerns over the collapse of trust in AI chip trading. Macro risks like ECB's rate path and Eurozone inflation remain in the background. Apollo Global's Torsten Sløk warns of a recession risk if hyperscalers' capex cycles misalign. The S&P 500 could reach 7,900 by year-end, while long-term investors benefit from the shift to micro fundamentals.