Taipei: Taiwan’s benchmark stock index, the Taiex, is projected to soar to nearly 35,000 points by 2026, driven by the global surge in artificial intelligence development, as reported by major advisory firms.

According to Focus Taiwan, President Capital Management has presented the most optimistic prediction among five firms interviewed, forecasting the index to reach 34,988 points. Liao Wan-ting, the company’s president, noted that the expansion of AI applications from servers to edge AI devices such as smart glasses is expected to fuel the growth of AI-related stocks, thereby supporting a higher Taiex in the coming year.

The Taiex experienced a low of 17,391.76 on April 9 due to the threat of exorbitant tariffs by the Donald Trump administration on key U.S. trading partners but has since rebounded significantly. The index closed at 27,980.89 last Friday, marking a 21.47 percent increase for the year and a 61 percent rise from its April low, bolstered by easing tariff concerns, AI enthusiasm, and anticipated U.S. Federal Reserve interest rate cuts.

Capital Investment Management President Fan Chen-hung highlighted the benefits accrued by Taiwan’s leading tech firms, including Taiwan Semiconductor Manufacturing Co. (TSMC), Hon Hai Precision Industry Co., Delta Electronics Inc., MediaTek Inc., and Quanta Computer Inc., from the AI momentum. Fan predicted the Taiex could reach 34,000 points next year, with these companies, which comprise 52.8 percent of the market’s capitalization, continuing to dominate the market.

First Capital Management Chairman Huang Yi-ting expressed confidence in the sustained global AI trend, predicting Taiwan will remain a major beneficiary. He anticipated TSMC, which accounts for over 40 percent of the Taiex’s market cap, to achieve earnings per share of NT$75 next year, assisting the Taiex in advancing further. The market has projected TSMC’s EPS to exceed NT$60 this year. Huang forecasted the Taiex could attain 31,000 points by 2026, potentially reaching 33,000 if the economy improves further.

Fubon Securities Investment Services Chairman Chen Yi-kuang projected the index to climb to 32,000 points, with the potential to reach 34,000 in an ideal scenario, attributing this to ample market liquidity and expected Fed rate cuts driving AI-driven momentum.

Hua Nan Securities Investment Management Chairman Lu Jen-chieh anticipated the Taiex could rise to 32,000 next year, expressing confidence that the AI bubble is not expected to burst in the near future.