Despite more than expected results from the TSMC and ASML and TSMC increased their own capex, still overall Chip and memory stocks are falling since last few days.
I see capex increase by TSMC more as geopolitical decision than the genuine need of new facility, but still it's bullish signal and hint towards further spending by hyperscalers.
I understand further correction of TSMC after this capex increase due to less money for buyback and consumer dividend, but I couldn't understand the further fall of chip and memory stocks after TSMC earnings report.
Is this fall signal towards memory stocks are saturated and even after beating expectations and hinting towards further hyperscaler capex rise, does still market feels after facility extension from memory companies and China memory in the market; mere increment in hyperscalers capex is not enough to maintain current memory shortage, supply demand and maintain current growth in future to justify current stock valuations?