Global market brief · 2026-07-29

Asia AI hardware enters second-stage deleveraging.

Korea and Taiwan continued to sell off after yesterday’s shock. SK Hynix delivered record revenue and profit, but missed extreme expectations, proving the market is now pricing valuation, leverage and AI capex returns rather than demand alone.

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Updated: 2026-07-29Theme: second-stage AI hardware deleveraging + SK Hynix record results but valuation reset + Fed and megacap earningsCoverage: TSMC, SK Hynix, Samsung, MU, DRAM, NVDA, AMD, SOXX, Microsoft, Meta, Fed, TraderXYZ
Main read

Strong AI demand is no longer enough.

SK Hynix posted record revenue and operating profit, yet its operating profit missed very high expectations by about 5.4%. That is the market’s message today: AI demand has not disappeared, but extreme valuation assumptions are being compressed.

Hyperliquid HYPE Market Brief 2026-07-29 | Second-stage Asia AI chip deleveraging
1. The selloff is now a second-stage deleveragingKOSPI fell another ~8.2% by midday after yesterday’s collapse, while Taiwan Weighted fell about 4.9%. This is now a combined earnings, valuation and leverage reset.
2. TSMC is different from commodity memoryCXMT and China DUV progress hit generic DRAM and mature-node expectations first. TSMC’s moat in advanced logic, CoWoS and customer validation is deeper, though ETF redemption can still force selling.
3. Memory remains the epicenterTraderXYZ SKHX, SNDK, MU, DRAM and SKHY all fell double digits with heavy notional flow. Direction is useful, but perp magnitudes are amplified by leverage and cross-session liquidity.
4. Tonight resets the narrativeThe Fed decision plus Microsoft and Meta earnings will test whether AI capex can become cloud revenue, ad efficiency, cash flow and real returns.

Key Data

Taiwan and TraderXYZ data are around 12:38 Beijing time on July 29; U.S. data use July 28 close.

Taiwan and TSMC

Taiwan Weighted near 39,579.53, -4.86%. TSMC near NT$2185, -4.17%, still less weak than the broader Taiwan index.

Korea and SK Hynix

KOSPI near 5,531.56, -8.2%; SK Hynix -12.6%; Samsung -8%. SK Hynix Q2 revenue rose 257% YoY and operating profit rose 557%, but profit missed very high expectations.

U.S. semiconductor close

SOXX -4.91%, MU -8.95%, AMD -8.12%, SNDK -14.30%, AMAT -7.86%, while NVDA was roughly flat and MSFT/GOOGL rose.

TraderXYZ

Top-ten 24h notional volume was about USD 6.03B. SKHX, SNDK, MU, DRAM and SKHY drove the memory-led stress. TSM was not in the top ten.

Fed and oil

The Fed is expected to hold 3.50%-3.75%, but a 32%-36% hike tail remains. Brent rebounded toward the high USD 80s, keeping inflation risk alive.

Strategy lens

Separate advanced foundry, HBM, generic DRAM/NAND and equipment. They are all AI-linked, but they no longer share the same risk profile.

Sources: AP: Asia markets and chip selloff · AP: Wall Street close · SK Hynix official Q2 2026 results · SK Hynix SEC filing · Reuters: Asia chip selloff · Reuters: Fed expectations · Morgan Stanley: market risks and positioning · Microsoft earnings date · Meta Q2 2026 earnings call · Hyperliquid Info API · Taiwan Stock Exchange

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2026-07-29Second-stage deleveraging and SK Hynix expectation missKorea and Taiwan continued to sell off after yesterday’s shock. SK Hynix delivered record revenue and profit, but missed extreme expectations, proving the market is now pricing valuation, leverage and AI capex returns rather than demand alone.Latest2026-07-28Asia chip deleveraging and CXMT memory shockKorea and Taiwan semis sold off sharply as CXMT reset memory risk, with Fed and megacap earnings as the next tests.Archive