VXUS is currently influenced by strong demand for AI-driven technologies and strategic developments in semiconductor manufacturing. TSM's record first-quarter revenue, up 35% year-over-year, highlights the critical role of AI chips, with
Nvidia now a substantial 22% contributor to its sales. This underscores the interdependence within the AI hardware supply chain and signals continued hyperscaler capital expenditure. Furthermore, Japan's substantial subsidies for its AI chip venture, Rapidus, emphasize the strategic importance of ASML's lithography systems for domestic advanced chip manufacturing, potentially boosting its order books. In parallel,
Alibaba (BABA) is making significant strides in AI, developing advanced video models and deploying its proprietary AI chips to enhance its infrastructure and reduce reliance on foreign suppliers. However, BABA's core e-commerce revenue growth has decelerated, presenting a mixed picture for the company. While AI hardware demand appears robust, historical patterns suggest a possibility of profit-taking after recent rallies, and ASML's own significant stock appreciation warrants investor scrutiny. Traders should monitor upcoming earnings from key holdings, ongoing government initiatives in semiconductor manufacturing, and macro data for demand signals and potential sentiment shifts.
