TAIPEI (Taiwan News) — Taiwan's stock market rallied on Friday as strong earnings reports from US tech giants bolstered investor confidence.
The Taiwan Stock Exchange Capitalization Weighted Stock Index, or TAIEX, gained 552.61 points to close at 20,787.64, its peak for the day. Turnover totaled NT$327 billion (US$10.7 billion), according to CNA and CTEE.
The TAIEX gained 914.91 points this week as tech optimism resurged, recovering previous losses.
TSMC climbed 4.63% to NT$950 (US$31) after major US-based brokerages named it a top investment pick. Foxconn also saw a 4.24% increase, closing at NT$147.5, while MediaTek experienced heavy selling pressure, reversing earlier gains and finishing down 3.7% at NT$1,300.
Strong earnings from Microsoft and Meta reinforced confidence in the AI sector, lifting related stocks across the board. Quanta Computer rose 5.24% to NT$251, Wistron gained 3.94%, closing at NT$105.5, and Wiwynn, which recently announced plans to build a factory in Texas, saw an 8.12% increase to finish at NT$2,065.
With Taiwan's peak summer electricity demand approaching and the country moving toward a nuclear-free policy, marked by the scheduled shutdown of Nuclear Power Plant No. 3’s Unit 2 on May 17, investors showed increased interest in heavy electrical equipment and green energy stocks. Shihlin Electric & Engineering, Allis Electric, Luxe Green Energy Technology, and Ibase Solution all hit their daily price limits.
The robotics sector also continued its momentum following remarks by Tesla CEO Elon Musk, who announced plans to ramp up humanoid robot production tenfold next year, predicting that robots would outperform top surgeons within five years. Both Ying Han Technology and Taiwan Benefit hit their third consecutive daily limit-ups.
Despite the market's strong performance, institutional analysts advise caution. While sentiment remains positive, recent US GDP data showed the first contraction in nearly three years, prompting concerns over the broader economic outlook.
Analysts suggest watching next week's Federal Open Market Committee meeting for potential shifts in US monetary policy.
Taishin Securities Investment Advisory Deputy General Manager Huang Wen-ching (黃文清) said that strong US tech firm earnings and steady capital expenditures are boosting AI-related stocks. He added that Taiwan's market is currently recovering from a bearish gap between April 2 and April 7.
However, Huang cautioned that with the US expected to announce new semiconductor tariffs in May, the market could enter a consolidation phase. The timing and details remain uncertain, and concerns about their potential impact continue to weigh on sentiment.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
