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Surging Treasury Yields Spark Alarm: Why AI Tech Stocks Remain a Buy
Electronic Technology · Semiconductors · economic_daily · 2026-08-24
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Despite concerns over 19-year high Treasury yields, analysts argue that government intervention will stabilize rates, creating a prime buying opportunity for AI-related tech stocks.
What Happened
Treasury Yields and Market Sentiment: Analyst Chiang Kuo-chung suggests that while rising Treasury yields have triggered fears of a financial crisis, a total market collapse is unlikely. The U.S. government is expected to intervene to prevent long-term rates from spiraling, protecting the broader bull market.
Mechanisms for Rate Stabilization: Two key factors are expected to exert downward pressure on yields: the demand for short-term Treasuries by stablecoin issuers and the U.S. Treasury’s buyback program. A decline in risk-free rates would trigger a discount-rate effect, significantly boosting the valuation of high-growth AI and tech stocks.
AI Infrastructure Growth: With NVIDIA’s Spectrum-X switches entering mass production, CPO (Co-Packaged Optics) technology is emerging as the critical nervous system for AI. Lower financing costs are expected to further encourage corporate investment in data centers and high-performance computing hardware.
Key Supply Chain Players: Several Taiwanese firms, including Optoway, LuxNet, U-Linc, and others, are well-positioned within the CPO ecosystem. Investors should monitor these companies as they benefit from the industry-wide transition toward higher-speed transmission standards and increased production capacity.