🧠 Technology & AI risk-off · 1–3 years
A what‑if from the future

What if government chip-fab subsidy clawbacks strain AI project finance during a downturn?

Clawbacks or delays of government chip-fab subsidies amid an AI downturn strain fab project finance, raising costs and stalling capacity additions.

10%
our model probability
over 1–3 years
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 10% · 90% range 0–21% · 40 analogues · measured class supply_chain 46% in 3 yr · 3% held back for the unknown
how we built this number — every step
Measured class rate — supply_chain ≈0.2052/yr → 46% in 3 yr46%
Analyst prior · editorial share 17% of the class8%
Pooled · weight 87%10%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)10%
Published10%

The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.

The butterfly cascade

How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.

Resolution timeline — how this probability is moving

Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 1–3 years horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.

loading the timeline…

What it would mean

If this plays out, it is a risk-off shock. Clawbacks or delays of government chip-fab subsidies amid an AI downturn strain fab project finance, raising costs and stalling capacity additions. The trigger decomposes into signed root‑shocks — AI capex ▼ · Credit spreads ▲ · Industrial demand ▼ · Semiconductor supply risk ▲ — which propagate through our causal graph to the markets below.

If it happens — the markets it would move

Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.

MarketClassProjected move
1Nvidia NVDAon Hyperliquid 📈 chartEquity▼ -1.8%
hist -1.26–-0.29% · other way +3.76% (n=10)
2TSMC TSMon Hyperliquid 📈 chartEquity▼ -1.4%
hist -1.6–-0.14% · other way -0.76% (n=10)
3Broadcom AVGOon Hyperliquid 📈 chartEquity▼ -1.1%
hist -1.29–+1.22% · other way +1.9% (n=7)
4Micron MUon Hyperliquid 📈 chartEquity▼ -1.0%
hist -1.2–+0.91% · other way -2.93% (n=10)
5Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -0.9%
hist -0.74–+0.42% · other way -0.51% (n=10)
6ASML ASMLon Hyperliquid 📈 chartEquity▼ -0.9%
hist -2.06–+0.39% · other way -5.0% (n=10)
7AMD AMDon Hyperliquid 📈 chartEquity▼ -0.7%
hist -0.59–+0.14% · other way -1.57% (n=10)
8Marvell MRVLon Hyperliquid 📈 chartEquity▼ -0.7%
hist -0.54–+0.02% · other way -0.33% (n=10)
9Qualcomm QCOMon Hyperliquid 📈 chartEquity▼ -0.5%
hist -2.09–+0.63% · other way -1.42% (n=10)
10Freeport (copper) FCX 📈 chartEquity▼ -0.3%
hist -3.7–+0.66% · other way +3.96% (n=10)
11Intel INTCon Hyperliquid 📈 chartEquity▼ -0.4%
hist -0.27–+0.04% · other way -2.81% (n=10)
12High-yield credit HYG 📈 chartRate▼ -0.3%
hist -0.38–-0.02% · other way +0.61% (n=9)
13Financials XLF 📈 chartEquity▼ -0.2%
hist -0.24–-0.03% · other way -1.51% (n=10)
14MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -0.2%
hist -3.54–+1.19% · other way +20.69% (n=10)

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
Cash / hedgeRaise cash and hold the long hedges above; this scenario is net risk-off.
For a common-man portfolio: A typical stock-heavy portfolio is at risk. Consider trimming equities, raising cash, and a small cash hedge.
Also moves (not yet on Hyperliquid): Freeport (copper) -0.3% · High-yield credit -0.3% · Financials -0.2% · JPMorgan -0.2%

Historical precedent — what analogous events actually did

Across 40 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.

Gold tops $4,000 and silver spikes past $50 in historic squeeze 2025-10 Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 TSMC slumps as DeepSeek roils AI-chip demand assumptions 2025-02 Micron's weak FQ2 guidance sparks a sharp December selloff 2024-12 ASML bookings-miss crash 2024-10 Gold tops $2,500 for the first time on Fed rate-cut bets 2024-08 Megacap AI-capex doubt selloff 2024-07 Trump 'Taiwan should pay for defense' chip selloff 2024-07 First Republic Bank seized and sold to JPMorgan 2023-05 Regional-bank panic deepens after Signature seizure 2023-03 Netflix subscriber-loss crash 2022-04 Meta 2022-02 Kaisa Group offshore default 2021-12 Didi removed from China app stores after NYSE IPO 2021-07 Credit Suisse freezes Greensill supply-chain funds 2021-03 Gold closes above $2,000/oz for the first time 2020-08 Nvidia crypto-glut guidance crash 2018-11 North Korea sixth nuclear test 2017-09 North Korea 'fire and fury' nuclear scare 2017-08 HYG record outflows in 2014 high-yield rout 2014-10 Mt. Gox collapse 2014-02 Mt. Gox halts withdrawals 2014-02 Gold futures velocity-logic flash crash 2014-01 Cyprus deposit bail-in 2013-03 Spain requests EUR100bn bank bailout 2012-06 Bankia nationalised in Spain's banking crisis 2012-05 Gold all-time peak of $1,921/oz 2011-09 Portugal requests EU-IMF bailout 2011-04 Egyptian revolution / Mubarak uprising 2011-01 Greece first EU/IMF bailout 2010-05 Greece requests EU/IMF bailout 2010-04 Anglo Irish Bank nationalisation 2009-01 Fannie Mae and Freddie Mac conservatorship 2008-09 IndyMac Bank seized by the Office of Thrift Supervision 2008-07 Northern Rock bank run 2007-09 American Home Mortgage bankruptcy 2007-08 Bear Stearns freezes redemptions on subprime hedge funds 2007-06 New Century Financial bankruptcy 2007-04 Turkey lets the lira float 2001-02 Mexico $50bn international rescue package 1995-01
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
Bitcoin BTCSHORT-4.9% · 5d -1.4%70%20 0.34·
FCX FCXSHORT-3.0% · 5d -1.6%69%39 0.33✓ matches cascade
XCU XCUSHORT-2.1% · 5d -1.1%64%39 0.25✓ matches cascade
MSTR MSTRSHORT-3.2% · 5d -3.1%59%39 0.15✓ matches cascade
Volatility VIXLONG+6.2% · 5d +1.8%57%40 0.14✓ matches cascade
Gold XAULONG+0.3% · 5d +0.1%56%39 0.12·
SMH SMHLONG+0.8% · 5d -1.4% ↺ fades56%39 0.11⚠ differs
High-yield credit HYGSHORT-0.2% · 5d -0.0%57%37 0.11✓ matches cascade
TSM TSMSHORT-0.8% · 5d -2.1%56%39 0.10✓ matches cascade
INTC INTCLONG+0.2% · 5d -1.4% ↺ fades55%40 0.09⚠ differs
10y yield DGS10SHORT-8bp · 5d +0bp ↺ fades55%40 0.08·
QCOM QCOMSHORT-1.8% · 5d -3.2%55%40 0.07✓ matches cascade
ASML ASMLSHORT-1.5% · 5d -3.8%54%39 0.06✓ matches cascade
US dollar DXYLONG+0.5% · 5d +0.2%53%40 0.04·

Methodology. Probability and impact are anchored to history and scored against what actually happens — wins and losses, in public, at Reality Check. Crowd odds live from Polymarket & Kalshi. By Vikas Singh, Quantitative Strategist. Updated 2026-07-03.