Taipei: Shares in Taiwan closed higher Wednesday, driven by a surge in artificial intelligence-related stocks as investors anticipated favorable outcomes from U.S.-based AI chip designer Nvidia Corp.'s upcoming investor conference.

According to Focus Taiwan, the Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), gained 214.80 points, or 0.88 percent, closing at 24,519.90. The index fluctuated between 24,410.08 and 24,539.88 throughout the day, with a total turnover of NT$454.65 billion (US$14.91 billion).

Moore Securities Investment Consulting analyst Adam Lin observed that the U.S. markets rebounded from their daily lows, with Nvidia shares rising by 1.08 percent overnight. Lin highlighted the upbeat sentiment among investors regarding AI development, expecting positive guidance from Nvidia. This optimism extended to the local main board, prompting investments in AI-related stocks, led by Taiwan Semiconductor Manufacturing Co. (TSMC).

TSMC, the most heavily weighted stock on the local market and a producer of chips for Nvidia, rose 1.28 percent to close at NT$1,190.00. This increase contributed about 120 points to the Taiex, elevating the electronics index by 1.22 percent. Other AI-related stocks also performed well, with Quanta Computer Inc. and Wistron Corp. rising 1.51 percent and 1.77 percent, respectively. Delta Electronics Inc. gained 5.11 percent, and Asia Vital Components Co. advanced 2.44 percent.

In contrast, Hon Hai Precision Industry Co., an iPhone assembler and AI server producer, ended down 0.48 percent. Despite this, the day saw high turnover levels, indicating investor willingness to pursue price gains. This enthusiasm also extended to old-economy industries, adding momentum to the Taiex.

Military concept stocks benefited from optimism over increased defense spending plans. Notably, Thunder Tiger Corp. surged 10 percent, while Lungteh Shipbuilding Co. and Air Asia Co. rose 5.76 percent and 5.79 percent, respectively. In the old-economy sector, Fortune Electric Co. gained 2.95 percent, and Shihlin Electric and Engineering Corp. added 1.38 percent. However, JSL Construction and Development Co. and Highwealth Construction Corp. experienced declines.

The financial sector underperformed the Taiex, losing 0.32 percent. Cathay Financial Holding Co. and Fubon Financial Holding Co. shed 1.26 percent and 1.61 percent, respectively.

Lin remarked on the Taiex's proximity to the historical intraday high of 24,551.42, urging investors to monitor U.S. market reactions to Nvidia's results, which could impact local tech stocks. Despite the Taiex's gains, foreign institutional investors sold a net NT$1.95 billion worth of shares on the main board, as reported by the TWSE.