TAIPEI (Taiwan News) — Taiwan’s stock market has surpassed Canada’s to become the world’s sixth largest, lifted by strong demand for artificial intelligence and semiconductor stocks.

Bloomberg reported that the total value of Taiwan-listed companies has climbed more than 35% this year to US$4.47 trillion (NT$143 trillion). Canada’s market rose about 5% over the same period to US$4.44 trillion.

The rally has been driven largely by chipmakers, particularly Taiwan Semiconductor Manufacturing Company, which accounts for nearly 45% of Taiwan’s main stock index. Its market value has surged to around US$1.8 trillion, reflecting global demand for advanced chips used in AI technologies, per Biget.

CNA reported that the makeup of a stock market can shape its performance. Taiwan’s market is heavily focused on technology and chip exports, putting it in a strong position to benefit from the global AI boom.

In contrast, Canada’s market relies more on energy, materials, and banking stocks, which have grown more slowly amid softer commodity prices and a weaker economic outlook.

Analysts say Taiwan could continue to gain if AI demand stays strong. However, they caution that the market’s heavy reliance on a small number of large tech firms could also lead to sharper swings if investor sentiment changes, per the Economic Times.