A number of stocks fell in the afternoon session after TSMC paired topline strength with a free cash flow-compressing capital expenditure reset, compounding a sector-wide selloff that began with ASML the day before.

Microchip Tech (MCHP) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.

MCHP's 35.3% YTD gain rests on inventory recovery, stronger bookings and AI data center growth, though supply chain constraints and competition remain risks.

A number of stocks jumped in the afternoon session after a cooler-than-expected June inflation report and a surprise capital expenditure warning from IBM appeared to validate AI hardware demand. June core CPI printed flat month-over-month (2.6% year-over-year versus a 2.9% forecast), reopening the door to a friendlier interest rate environment.

onsemi's 67% YTD rally reflects AI growth and portfolio gains, but auto volatility, competition and valuation may cap near-term upside.