AI Chip Profits Are Booming — So Why Are AI Stocks Falling?
TSMC just posted its 6th straight record quarter, with profit up nearly 69% and AI demand still outrunning supply. So why are Nvidia, AMD, and Micron falling? The answer isn’t about AI demand. It’s about what money costs, and this morning’s PPI report could tip the balance either
AI Is Now Carrying Wall Street's Profit Growth, and a 5% Treasury Yield Is Testing How Much It Can Hold
Stocks are near record highs with the 10-year Treasury yield above 5%, and one source of profit explains it. AI is expected to supply roughly two-thirds of the S&P 500's 30% earnings growth this quarter, with semiconductor profits projected up 136%. That support comes with a higher bar, and the first real test lands Thursday when Taiwan Semiconductor reports.
The AI Trade Just Split in Two: Micron Clears $1,000 as Microsoft Sheds $112 Billion
Micron closed above $1,000 a share. The same day, Microsoft lost roughly $112 billion in market value. That wasn't a tech selloff — Applied Materials gained more than 5% while Oracle fell. Money didn't leave AI. It moved down the stack, out of the companies paying for the buildout and into the ones selling it. Memory has stopped being a product and become a cost line, and with the 30-year Treasury at the highest level of 2026, the squeeze is coming from both directions at once. Wednesday's Fed minutes — where three officials dissented for a rate hike — will decide how much worse it gets.