Yahoo Finance Live's Jared Blikre discusses the stock market falling as investors await this week's Fed policy-setting meeting, the correlation between bitcoin and tech stocks, and how increasing tensions between Russia and Ukraine are affecting global stocks.
Taiwan Semiconductor Manufacturing (NYSE: TSM), popularly known as TSMC, laid out an ambitious capital spending plan for 2022 in a bid to shore up its manufacturing capacity and meet the booming demand for chips. TSMC has a capital expenditure (capex) budget of $40 billion to $44 billion for this year, which points toward a huge increase over its 2021 capital spending of $30 billion. What's more, TSMC's 2022 capital expenses are way higher than Intel's (NASDAQ: INTC) estimated outlay of $25 billion to $28 billion for this year.
Advanced Micro Devices' (NASDAQ: AMD) stock price has declined nearly 20% this year as rising interest rates have caused investors to cash out of higher-growth tech stocks. AMD also faces concerns about slower PC sales in a post-lockdown market, as well as tougher competition from Intel (NASDAQ: INTC) and Nvidia (NASDAQ: NVDA) in CPUs and GPUs, respectively. AMD is also still slogging through the ongoing chip shortage, which is causing traffic jams at its main manufacturing partner Taiwan Semiconductor Manufacturing (NYSE: TSM) (TSMC), and facing unresolved regulatory challenges for its planned takeover of Xilinx (NASDAQ: XLNX).