Taiwan’s stock market achieved a significant milestone on Thursday as shares surged to an all-time high, primarily fueled by robust performances from Taiwan Semiconductor Manufacturing Co. (TSMC) and other artificial intelligence (AI)-related stocks. The benchmark Taiex index concluded the trading day with a remarkable gain of 176.47 points, representing a 0.94 percent increase, to settle at 18,852.78. This surge was supported by a substantial turnover of NT$397.87 billion (US$12.62 billion), signifying robust investor activity.
Taiwan TSMC’s influence
TSMC, a pivotal player in Taiwan’s market, spearheaded the rally with its shares witnessing a notable uptick of 1.62 percent, closing at NT$692.00. The surge in TSMC’s stock was largely attributed to its pivotal role as a leading provider of foundry services for AI chip designer Nvidia Corp. Following Nvidia’s announcement of fourth fiscal quarter earnings that surpassed Wall Street’s expectations, TSMC experienced a surge in demand for its semiconductor services, propelling its stock to new heights.
The positive momentum extended beyond TSMC, encompassing other AI-related semiconductor stocks as well. Asia Vital Components (AVC), a prominent player in this domain, saw its shares soar by 5.05 percent to end at NT$520.00. Similarly, smartphone IC designer MediaTek Inc. observed a significant uptick of 3.47 percent, closing at NT$1,015.00. This broad-based surge in AI-related stocks underscores the growing investor confidence in the potential of artificial intelligence technology and its implications for various industries.
The buoyancy in the stock market was not limited to the technology sector alone. The bellwether electronics index closed 1.29 percent higher, reflecting the overall optimism prevailing in the market. Additionally, the financial sector witnessed a modest increase of 0.22 percent, contributing to the broader market rally. This diversified upward movement across different sectors underscores the resilience and strength of Taiwan’s stock market.
Foreign investor sentiment
Foreign institutional investors played a significant role in driving the market’s upward trajectory, as evidenced by their net purchase of NT$16.26 billion worth of shares on the main board. This influx of foreign capital underscores international investors’ confidence in Taiwan’s market fundamentals and the growth potential of its key players, particularly in the technology and AI sectors.
The record-breaking performance of Taiwan’s stock market, propelled by the surge in TSMC and AI-related stocks, reflects the growing investor optimism and confidence in the country’s economic prospects. With Taiwan positioned as a global leader in semiconductor manufacturing and at the forefront of AI innovation, investors are increasingly recognizing the value and potential of companies operating in these sectors. As the market continues to ride on this wave of optimism, stakeholders remain vigilant amidst evolving global economic dynamics.
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