AI Supply Chain and Semiconductor Market Outlook

Market analysts are evaluating investment strategies for the semiconductor sector as the Taiwan stock market approaches the 50,000-point milestone. Experts suggest focusing on the “real AI” supply chain—companies with substantive revenue and earnings per share (EPS) growth driven by cloud service provider capital expenditures. Key areas of interest include AI semiconductors, advanced packaging, optical communications, memory, and high-end electronic materials.

Specific companies highlighted include TSMC, due to increased capital expenditure and leadership in advanced processes and packaging. Other notable mentions include United Microelectronics Corporation (UMC) regarding mature process pricing, Nanya Technology regarding DRAM lead times, and ASE Technology Holding, ASE Group, Largan Precision, and台光電 (EMC) as part of the “new three lights” strategy in the advanced packaging era.

In the broader chip sector, concerns regarding AI financing have impacted market sentiment. Broadcom (AVGO) recently tested support levels near $339 amid warnings from its CEO that funding limitations could potentially cap chip demand. While the stock showed a bounce, analysts remain cautious until buying strength is confirmed by cumulative volume delta (CVD).