Jul 17, 2026 · 8 min
Tech sell-off hits chipmakers while retail acquisition boosts Seven & I
TSMC Falls, Kioxia Dips, Seven & I Gains
This episode highlights the delicate balance in tech investing, where positive earnings are easily overshadowed by capital spending fears, even as retail giants find growth in global acquisitions.
- 1TSMC shares declined despite positive earnings due to investor anxiety over rising capital expenditure forecasts.
- 2Japanese memory maker Kioxia suffered a major stock plunge amid a broader semiconductor market sell-off.
- 3Convenience operator 7 & I gained market favor after acquiring Poland's Żabka Group to fuel global expansion.
Don't miss
Winnie Sue details how Kioxia shares plunged as a broader semiconductor sell-off swept through Japanese and Asian tech markets.
The brief
Even strong earnings cannot always shield tech giants from market skepticism. Despite posting positive financial results, Taiwan Semiconductor Manufacturing Company saw its stock decline as investors reacted to rising capital expenditure forecasts.
This skepticism triggered a broader sell-off across the Asian chip sector. Japanese memory maker Kioxia suffered a major stock plunge, highlighting how sensitive semiconductor valuations remain to shifting capital spend expectations.
Away from the hardware slump, retail expansion provided a bright spot. Japanese retail giant 7 & I saw its shares rise following the strategic acquisition of Poland's Żabka Group, signaling a strong push into European convenience markets.
What was said on this episode
12 statements · 6 positive · 5 negative · 1 mixed
TSMC’s 2026 capital expenditure forecast is at least $4 billion above its previous forecast.
“capex coming at 60 to 64 billion USD for 2026, that is at least 4 billion USD higher than the previous forecast”
Listen at 1:19
Demand may be insufficient to justify TSMC’s increased capital spending.
“will there be enough demand to really be able to justify these spending”
Listen at 1:31
TSMC’s gross margin is below the highest analyst estimate despite meeting the average estimate.
“gross margin at 67.7% that is meeting average estimate but still coming below the Street's highest estimate”
Listen at 1:46
Kioxia shares fell 16% amid concerns about spending.
“Kioxia is in fact a flesh memory maker in Japan and it saw shares plunging 16% today”
Listen at 2:52
Kioxia shares remain up about 400% this year after a much larger rise.
“it's up about 400% at this point”
Listen at 3:14
Kioxia’s market capitalization fell about 50% over the past month.
“the market cap is in fact seeing, you know it down about 50% in just the past month”
Listen at 3:20
Bain’s exit may indicate Kioxia’s market has already peaked.
“that might mean that there can be a market market peak coming already”
Listen at 3:43
7 & I is the world’s largest convenience-store operator.
“7 and I is the world's largest convenience store operator”
Listen at 4:14
Acquiring Żabka helps 7 & I expand its overseas operations.
“this actually helps seven and I to grow its overseas operation”
Listen at 4:43
7 & I aims to have 100,000 stores globally under its midterm plan.
“it really wants to have 100,000 stores globally for its midterm plan”
Listen at 4:52
Buying Żabka would help 7 & I expand in Europe.
“would help it expand in Europe”
Listen at 5:07
The acquisition gives Żabka a long-term strategic partner for further growth.
“it really helps it to have this long term strategic partners to grow further as well”
Listen at 5:23
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
Featuring
Taiwan Semiconductor Manufacturing Company Limited (TSMC)
Żabka GroupBooks & mentions
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