$TSMC (-1.7%) delivered a better-than-expected revenue outlook of +44% for FY’26, up from its previous FY’26 forecast of +40%, but failed to dispel rising concerns about the sustainability of the global AI buildout. Other chip stocks are falling in sympathy pre-mkt as investors seek to reduce the weighting of tech stocks in their portfolios, which has reached record proportions.

Tech now makes up 40% of the S&P500, up from 34% at the end of 2025 and 29% at year-end 2021. I see high growth health care names as major beneficiaries as investors seek alternatives to reduce their AI exposure. $Eli Lilly(LLY.US) tacked on +1.5% pre-mkt to yesterday’s +3.6% rise as oral GLP-1 momentum builds (Foundayo) while Injectable growth (Zepbound, Mounjaro) remains intact. $Eli Lilly(LLY.US) reports earnings on Oct 29th and I expect management to again raise FY2026 rev guidance (prior $85-$87B +35% YoY).