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EP088 - The Correction, Explained

Picture a single number that's supposed to tell you how excited Wall Street is about artificial intelligence right now. That's basically what the Philadelphia Semiconductor Index is — it's a basket of the biggest US chipmakers, and it moves up when AI hype is hot and down when it's not. Last Friday, that index dropped ten percent. In one day. That's not a bad day — that's the kind of move you usually only see during an actual crash. And on Monday, Taiwan got hit first, and hardest. The Taiex plunged more than two thousand six hundred points, and TSMC — the company that quietly builds the chips inside almost every AI product on the planet — had its biggest single-day price drop ever [VERIFY SUPERLATIVE]. Sounds like the bubble just popped, right? Except — by Friday, Taiwan's market had already clawed almost all of it back. So what actually happened — which is exactly what we're looking at this week.

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