Why Are Tech Stocks Falling Today? Chip Sell Off Explained

Why chip stocks and tech names are under pressure

Two separate company stories combined to unsettle sentiment across the sector this week. TSMC reported second quarter results on 16 July 2026 that beat Wall Street estimates on revenue, and the company raised its full year capital expenditure guidance to between 60 billion and 64 billion US dollars, up from prior guidance, according to Bloomberg (17 July 2026). Despite this, TSMC shares fell around 7.3% in Taipei trading as some investors focused on rising costs and questioned whether elevated spending signals slowing demand growth rather than confidence, Bloomberg reported.

Separately, streaming giant Netflix reported second quarter revenue of 12.56 billion US dollars, up around 13% to 13.4% year on year depending on the measure used, alongside earnings per share of 80 cents, narrowly ahead of the 79 cents analysts had expected, according to CNBC (16 July 2026). Shares fell as much as 8% to 9% in after hours trading. The reaction centred on guidance. Netflix said it expects third quarter revenue growth of around 11.7% to 12%, a second consecutive quarter of slowing growth, as reported by Bloomberg and AFP (16 July 2026).