TAIPEI (Taiwan News) — Taiwan's stock market experienced a rise of over 650 points on Friday (Oct. 18), driven by Taiwan Semiconductor Manufacturing Company’s (TSMC) positive fourth quarter (Q4) outlook and its share price reaching a new record high of NT$1,100 (US$34).
The broader market experienced a downturn, with mid-cap and small-cap stocks closing in the red. Despite this, the Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) closed at 23,487.27 points, up 433.43 points, or 1.88%, with trading volume reaching NT$485 billion (US$15 billion), per CNA.
The electronics and financial sectors led today's gains, closing up 2.45% and 1.34% respectively. However, construction and shipping sectors lagged, falling 0.34% and 0.04%.
TSMC's investor conference on Thursday (Oct. 17) revealed an optimistic Q4 outlook. The company projected a 13% sequential increase in quarterly revenue between US$26.1 billion and US$26.9 billion, per UDN Money.
The Q4 of the financial year for most companies begins on Oct. 1 and ends Dec. 31. TSMC's advanced chips are expected to drive strong growth in the fourth quarter, fueled by robust demand for AI-related products which are expected to contribute 15% of the company's total revenue this year, TSMC Chair and Chief Executive Officer C. C. Wei (魏哲家) said.
Largan Precision issued a conservative outlook for Q4 due to order cuts from its clients, with stocks falling 8.64% and closing at NT$2,325 with a trading volume of 2,986 shares. Chenming Electronic Technology hit a record high of NT$161.5 as the company ramps up shipments of Nvidia GB200 server cabinets.
Largan Precision's shares dropped 8.64% to close at NT$2,325 as the company issued a cautious outlook for Q4 due to client order cuts. Meanwhile, Chenming Electronic Technology's stock reached a new high of NT$161.5, driven by increasing shipments of Nvidia GB200 server cabinets.
Cathay Futures Consultant manager Tsai Ming-han (蔡明翰) believes TSMC's positive outlook has helped alleviate market fears of an AI bubble. This could lead to the Taiwan stock market resuming its upward trajectory, similar to the first half of the year, per CNA.
