Breakfast News: Chips Are Hot, Phones Are Not

TSM posted its sixth consecutive record profit, holding strong margins even as it ramps 2-nanometer production. The print landed into a rough tape: broader AI stock selloffs hit chip names as valuation and AI credit concerns surfaced.

That split matters. TSM's results show no visible strain from the 2-nanometer ramp, yet the group still sold off. Interpretation: the market is trading sentiment around AI valuations and credit, not the fundamentals TSM just reported.

Elsewhere, RKLB delayed its Neutron rocket to 2027, pushing a key program well out on the calendar. For a stock priced on launch milestones, a slip into 2027 resets the timeline investors have been underwriting.

The sharper warning comes from consumer hardware. Smartphone shipments fell 22% year-over-year as AI data centers absorb memory supply. Memory demand from data centers is driving up phone prices, which is delaying consumer purchases. Interpretation: the same AI buildout lifting chip revenue is squeezing phone volumes, which puts AAPL's device business in the crosshairs of that supply-and-price dynamic.