Taiwan stock market shifts focus to AI growth sectors

AI supply chain semiconductor industry Taiwan stock market ASIC AI infrastructure

The Taiwan stock market is undergoing a structural shift in valuation, moving from a value-oriented market toward one that prioritizes high-growth potential, specifically driven by the AI wave. While the index has reached high levels, there is a growing divergence between strong index performance and individual stock weakness, as capital concentrates heavily in AI-related sectors.

Key sectors identified for observation include AI chips and ASICs (led by TSMC and MediaTek), AI power and cooling (Delta Electronics), high-speed PCBs, memory, advanced packaging, and optical interconnects. Analysts note that while the AI infrastructure demand remains robust, investors are increasingly focusing on companies that can demonstrate actual earnings growth and order visibility rather than just participating in the AI theme.

Market volatility remains a factor, with US Treasury yields and global interest rate trends acting as significant variables for technology stock valuations. Despite these risks, the long-term outlook for the AI supply chain remains positive due to sustained capital expenditure and expanding demand for data center infrastructure.

Entities

Advantest · Delta Electronics · Ibiden · Mark Zuckerberg · MediaTek · Meta Platforms · Nasdaq · Nikkei 225 · Qualcomm · TSMC · Taiwan · Taiwan Semiconductor Manufacturing Company

Claims

What the coverage asserts, and how many sources carry each claim.

[○ 1 SOURCE] Advantest shares rose 4.09%, contributing significantly to the Nikkei's rise. www.arabnews.jp
[○ 1 SOURCE] Meta announced a new small portable gadget called Meta Charm. www.arabnews.jp
[○ 1 SOURCE] The yield on Japan's 10-year government bond rose to 3.055%, its highest since August 1996. www.arabnews.jp
[○ 1 SOURCE] The TOPIX index rose 0.12% to 4,096.01. www.arabnews.jp
[DISPUTED] The Nikkei 225 closed at 65,513.99 yen on September 24.
[DISPUTED] The Nikkei 225 index rose 1.33% to 65,883.41 during morning trading. www.arabnews.jp
[○ 1 SOURCE] Socionext, Meiko Electronics, and Ushio Inc. saw stock increases of over 10%. www.arabnews.jp
[○ 1 SOURCE] Ibiden's stock price increased by 15.47% following the Meta announcement. www.arabnews.jp