TAIPEI (Taiwan News) — Taiwan’s stock market traded in a narrow range on Wednesday as investors turned cautious ahead of Nvidia’s earnings release after the bell.
The Taiwan Capitalization Weighted Stock Index lost 176 points to close at 26,580.12. Turnover fell to NT$494.3 billion (US$15.8 billion) from NT$640.4 billion on Tuesday, according to CNA and CTEE.
TSMC saw late-session selling of more than 4,000 lots, or 4 million shares, and ended down 0.71% at NT$1,395. Delta Electronics slipped 0.45% to NT$894, Foxconn declined 0.43% to NT$226, and MediaTek shed 0.85% to NT$1,160.
Momentum in memory stocks eased after US peers Micron and SanDisk retreated overnight. The sector remained the day’s most actively traded.
PSMC led the market with 517,000 lots and closed down 1.53% at NT$35.35. Winbond fell 3.26% to NT$59.4 on 261,000 lots, followed by Nanya Technology, down 0.31% to NT$160 on 152,000 lots.
Passive component makers provided some support. Iking Tech and Taiwan Chinsan Electronic Industrial both closing at their daily limit-up levels.
Cathay Securities Investment Consulting Deputy Manager Tsai Ming-han (蔡明翰) said Nvidia’s strong earnings may not immediately lift its share price. Since the rise of generative artificial intelligence in 2023, Nvidia has consistently beaten expectations, but its earnings releases have frequently been followed by profit-taking.
He added that the key difference this time is that AI-related stocks had recently pulled back, which could allow Nvidia’s results to have a more constructive effect on market sentiment.
Nvidia later reported earnings that beat sales and profit forecasts, temporarily easing concerns about the pace of the AI boom. “There has been a lot of discussion about an AI bubble,” CEO Jensen Huang (黃仁勳) told investors, “but from our perspective, the situation looks very different,” CNBC reported.
Tsai said investors are also watching potential US interest rate cuts, adding that AI demand remains solid and that the market should focus more on rate expectations than on short-term swings.
Taishin Securities Investment Advisory Deputy General Manager Huang Wen-ching (黃文清) said Taiwan’s equity market is unlikely to see a steep decline but may need more time to regain upward momentum toward year-end. He expects consolidation to continue, with the index likely to move between 26,400 and 27,000 in the short term.
Huang said stocks that have already corrected may stabilize first. He recommended fundamentally solid companies trading from a relatively low base, including textiles and footwear tied to next year’s sports-related demand, as well as passive component suppliers benefiting from price adjustments.
He added that non-electronics stocks may offer more room for growth with lower risk, while AI-related electronics should still see strength over the longer term despite short-term consolidation.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
