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Delta Electronics and Lite-On Shares Slide Despite Strong Revenue as Macro Headwinds Mount
Electronic Technology · Electronic Components · economic_daily · 2026-09-10
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Despite record-breaking August revenue for Delta Electronics and Lite-On, both stocks faced heavy selling pressure amid rising U.S. Treasury yields and unwinding yen carry trades.
What Happened
Revenue Performance: Delta Electronics reported a 35% year-on-year increase in August revenue, reaching a record high for the period, while Lite-On also posted strong growth. Despite these solid fundamentals driven by AI demand, both stocks saw significant declines, with Delta falling over 5% during intraday trading.
Bond Market Pressure: The U.S. 10-year Treasury yield surged to 4.85%, a level not seen since 2007, raising concerns over corporate borrowing costs. Investors were disappointed by the scale of the U.S. Treasury’s bond buyback program, leading to a sell-off in debt markets that pressured technology valuations.
Yen Carry Trade: Expectations of a potential interest rate hike by the Bank of Japan have strengthened the yen, forcing investors to unwind carry trades. This shift has led to the liquidation of positions in high-risk assets, including tech stocks that were previously funded by cheap yen borrowing.
Market Outlook: While AI-related demand remains robust, macroeconomic factors have become the primary driver of market sentiment. Investors are increasingly wary of how rising financing costs will impact the capital-intensive expansion of AI data centers by major cloud service providers.