Clear market notes built around the JSE, the rand, and what matters locally.

2026-08-03 13:30 • The Motley Fool Negative Axe Cap view: Selective

Asian stocks have declined 10% since June 22, with semiconductor stocks particularly hard hit as investors worry AI hyperscalers may scale back spending on data centers. The iShares Semiconductor ETF has fallen 22.9% since June, raising questions about whether the recent sell-off is temporary or signals a longer-term repricing of chip stocks amid concerns about AI investment sustainability.

Axe note: Falling Asian chip stocks and AI spending doubts ripple through, raising concerns for tech-focused investors and the rand.

2026-08-03 13:26 • The Motley Fool Positive Axe Cap view: Selective

Taiwan Semiconductor Manufacturing (TSMC) surpassed a $2.1 trillion market cap after a 7.6% jump on July 30, 2026. Despite this milestone valuation, the stock trades at approximately 20 times forward earnings—an average multiple for large companies. The company's Q2 results showed exceptional performance with 34% YoY revenue growth to $40.2 billion and 77% net income growth. The analyst argues this represents an attractive valuation for an extraordinary business, particularly given strong guidance for Q3 and early-stage 2-nanometer technology ramp-up.

Axe note: Taiwan Semiconductor’s strong results are impressive, but SA investors should watch the rand and related local sectors with caution.

2026-08-03 13:20 • The Motley Fool Mixed Axe Cap view: Selective

An analysis of five major tech companies' balance sheets reveals significant differences in their ability to weather financial shocks from AI spending. Microsoft has the strongest balance sheet with $36.5 billion in net cash and no complications. Alphabet holds the largest reserves but $80 billion is tied up in SpaceX stock. Amazon carries net debt but generates $161 billion in annual operating cash flow, making debt a choice rather than a strain. Meta has a thin cash cushion with dividend costs exceeding free cash flow. Oracle stands out as the most vulnerable with $97.6 billion in net debt and the weakest cash position among the group.

Axe note: Microsoft and Alphabet roll smoothly through AI spending, but Oracle’s stretched balance sheet raises red flags.