Chip Stocks Sink Despite Record Earnings

The Signal · 2026-07-17

Even a blowout wasn't enough. TSMC posted record earnings, yet chip stocks sold off worldwide as investors questioned whether AI infrastructure spending can keep climbing at its recent pace. Strong results no longer reassure the market. That's a warning about how durable this boom really is.

Also today: OpenAI introduced GPT-Red, an automated system using adversarial self-play to hunt prompt-injection flaws at scale. Its newest model showed six times fewer failures in replayed tests, hardening defenses.

Washington is starting to confront China's open-weight AI models, with US labs alleging they were distilled from stolen frontier know-how. It opens a broad fight over model ownership.

That's today's Signal. Thanks for watching.