⚔ Geopolitics risk-off · 1–3 years
A what‑if from the future

What if US-China decouple chip supply chains, raising structural costs?

Accelerating bifurcation of semiconductor ecosystems duplicates capacity and lifts equipment demand but raises long-run costs; ai_capex and chip-supply stress rise together, trade tension entrenches.

21%
our model probability
over 1–3 years
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 21% · 90% range 0–42% · 16 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 44% of the class20%
Pooled · weight 73%21%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)21%
Published21%

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. Accelerating bifurcation of semiconductor ecosystems duplicates capacity and lifts equipment demand but raises long-run costs; ai_capex and chip-supply stress rise together, trade tension entrenches. The trigger decomposes into signed root‑shocks — AI capex ▲ · Risk appetite ▼ · Semiconductor supply risk ▲ · Trade tension ▲ — 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
1TSMC TSMon Hyperliquid 📈 chartEquity▼ -1.7%
hist -3.78–+0.76% · other way +2.11% (n=12)
2Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -1.5%
hist -1.74–-0.11% · other way -0.29% (n=12)
3Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -1.4%
hist -1.84–-0.06% · other way +1.52% (n=12)
4Nvidia NVDAon Hyperliquid 📈 chartEquity▼ -1.1%
hist -0.9–-0.52% · other way +2.48% (n=12)
5ASML ASMLon Hyperliquid 📈 chartEquity▼ -1.1%
hist -3.85–+1.44% · other way -1.97% (n=12)
6Tech sector XLK 📈 chartEquity▼ -1.0%
hist -1.28–-0.04% · other way -0.34% (n=12)
7Alibaba BABAon Hyperliquid 📈 chartEquity▼ -0.9%
hist -1.25–+0.04% · other way -2.35% (n=12)
8AMD AMDon Hyperliquid 📈 chartEquity▼ -0.9%
hist -1.13–+0.22% · other way -1.2% (n=12)
9Marvell MRVLon Hyperliquid 📈 chartEquity▼ -0.9%
hist -2.88–+1.01% · other way +2.1% (n=12)
10Micron MUon Hyperliquid 📈 chartEquity▼ -0.7%
hist -2.22–+0.73% · other way +5.3% (n=12)
11Broadcom AVGOon Hyperliquid 📈 chartEquity▼ -0.7%
hist -1.03–+0.07% · other way +0.78% (n=12)
12Chinese yuan CNY 📈 chartFX▼ -0.6%
hist -1.13–+0.09% · other way -0.58% (n=12)
13Qualcomm QCOMon Hyperliquid 📈 chartEquity▼ -0.6%
hist -4.26–+1.77% · other way -0.71% (n=12)
14Intel INTCon Hyperliquid 📈 chartEquity▼ -0.5%
hist -7.1–+3.58% · other way -5.49% (n=12)

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): Tech sector -1.0% · Chinese yuan -0.6% · Aussie dollar -0.3% · Freeport (copper) -0.3% · Turkish lira -0.2% · Indian rupee -0.2%

Historical precedent — what analogous events actually did

Across 16 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.

TSMC slumps as DeepSeek roils AI-chip demand assumptions 2025-02 Megacap AI-capex doubt selloff 2024-07 China retaliates to Liberation Day: 34% tariffs + rare-earth controls 2025-04 Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 Micron's weak FQ2 guidance sparks a sharp December selloff 2024-12 ASML bookings-miss crash 2024-10 Trump 'Taiwan should pay for defense' chip selloff 2024-07 Nikkei 225 surpasses its 1989 bubble peak 2024-02 CHIPS and Science Act signed 2022-07 Netflix subscriber-loss crash 2022-04 Meta 2022-02 Didi removed from China app stores after NYSE IPO 2021-07 Chinese yuan breaks 7 per dollar; US names China manipulator 2019-08 Nvidia crypto-glut guidance crash 2018-11 Mexican peso crash on Trump 2016 win 2016-11 Smoot-Hawley clears the US House 1929-05
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
Gold XAULONG+1.2% · 5d -0.3% ↺ fades75%15 0.42·
CNY CNYSHORT-0.7% · 5d -0.6%72%15 0.41✓ matches cascade
SOL SOLSHORT-8.8% · 5d -6.8%77%12 0.35✓ matches cascade
NDX NDXSHORT-0.9% · 5d -1.5%75%15 0.33✓ matches cascade
XLK XLKSHORT-0.7% · 5d -1.2%69%15 0.28✓ matches cascade
Bitcoin BTCSHORT-3.8% · 5d -2.7%69%15 0.28✓ matches cascade
KWEB KWEBSHORT-3.4% · 5d -3.1%66%15 0.27✓ matches cascade
BABA BABASHORT-0.7% · 5d -3.6%62%15 0.24✓ matches cascade
AVGO AVGOSHORT-0.6% · 5d -2.9%62%15 0.22✓ matches cascade
QCOM QCOMSHORT-3.8% · 5d -4.1%62%15 0.20✓ matches cascade
ETH ETHSHORT-7.5% · 5d -5.8%63%14 0.20✓ matches cascade
TSM TSMSHORT-2.7% · 5d -3.0%62%15 0.19✓ matches cascade
High-yield credit HYGLONG+0.4% · 5d +0.1%62%15 0.19·
INTC INTCSHORT-6.8% · 5d -4.3%59%15 0.18✓ matches cascade

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.