TAIPEI (Taiwan News) — Taiwan’s stock market on Wednesday briefly moved below the 40,000-point level during trading, as investors remained cautious ahead of Nvidia’s earnings report.
The Taiwan Capitalization Weighted Stock Index, or TAIEX, lost 154.74 points to close at 40,020.82. Turnover totaled NT$978.92 billion (US$31.6 billion), compared with NT$1.88 trillion in the previous session, according to CNA and CTEE.
Large-cap technology stocks showed mixed movements. TSMC fell 0.91% to NT$2,185, finishing at its session low.
MediaTek rose 2.38% to NT$3,230. Foxconn declined 2.04% to NT$240, and Delta Electronics closed unchanged at NT$1,915.
Passive component stocks moved higher across the board as investors focused on tightening supply conditions and rising material costs linked to artificial intelligence-related demand. Market participants said pricing increases had not yet ended, supporting expectations of continued orders for Taiwanese suppliers, according to FTNN.
Leader Yageo added 4.63% to NT$520. Walsin Technology, Nichidenbo, Hua Jung Components, Lelon Electronics, Kaimei Electronic, Wpg and King Core Electronics all hit daily limit-ups.
Shipping-related stocks also advanced as the Shanghai Containerized Freight Index rose for a third consecutive week, indicating firmer container freight rates. Evergreen Marine rose 7.87%, while Yang Ming Marine Transport and Wan Hai Lines also moved higher.
Kura Sushi Asia reached its limit-up. This followed reports that US President Donald Trump purchased between NT$32-158 million worth of Kura Sushi USA shares in February, according to Tokyo Weekender.
Senior analyst Tsai Ming-han (蔡明翰) said Taiwanese equities remained structurally strong despite short-term volatility. He attributed the market's resilience to first-quarter earnings from Taiwan and US-listed companies that have generally exceeded expectations, alongside continued support from AI-related stocks.
However, Tsai said these stocks have already risen significantly over the past period, leaving valuation gaps at relatively elevated levels, suggesting some consolidation is likely. He added that Nvidia’s upcoming earnings report remains a key near-term catalyst.
In previous cycles, post-earnings pullbacks have often occurred after Nvidia’s results, with markets typically consolidating for about a week before resuming momentum. Tsai expects the TAIEX to remain in consolidation near elevated levels through the end of the month as investors assess earnings results and AI-related valuation pressures.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
