Taipei: Shares of Taiwan surged to record heights on Tuesday, spearheaded by contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), as investor enthusiasm for AI technologies overshadowed uncertainties stemming from Middle Eastern tensions.
According to Focus Taiwan, the Taiex, Taiwan Stock Exchange's benchmark index, climbed 219.40 points, or 0.48 percent, to close at 45,557.31, navigating a range between 44,869.38 and 45,915.92, with a total turnover of NT$1.61 trillion (US$50.60 billion).
Concord Securities analyst Kerry Huang noted a positive sentiment towards AI applications showcased at the current Computex Taipei event, which invigorated local tech stocks following a rally in the U.S. tech sector, reflected by a 1.06 percent rise in the Philadelphia Semiconductor Index. Huang highlighted that investor optimism regarding a potential U.S.-Iran ceasefire further mitigated geopolitical concerns.
TSMC, accounting for over 40 percent of the market's value, saw its shares rise 1.06 percent to an all-time high of NT$2,380.00, largely contributing to the Taiex's upward movement by about 200 points. This surge followed Nvidia Corp. founder and CEO Jensen Huang's unveiling of the new AI chip NX1, developed in collaboration with TSMC and IC designer MediaTek Inc. Despite its involvement, MediaTek's shares dipped 0.66 percent to NT$4,575.00 as investors capitalized on earlier gains.
Taiwan's memory chipmakers Nanya Technology Corp. and Winbond Electronics Corp. both hit their daily maximum increase of 10 percent, closing at NT$419.50 and NT$184.50, respectively, buoyed by a 6.64 percent overnight gain by U.S. counterpart Micron Technologies Inc. The launch of the NX1 chip also spurred PC brands like Acer Inc. and Asustek Computer Inc., which both soared 10 percent to NT$42.55 and NT$920.00, respectively.
Additionally, iPhone assembler and AI server manufacturer Hon Hai Precision Industry Co. increased by 2.73 percent to NT$301.50, while Quanta Computer Inc., another AI server supplier, saw a 7.52 percent rise to NT$400.50. The financial sector also contributed to the Taiex's momentum, with CTBC Financial Holding Co. and Fubon Financial Holding Co. gaining 3.22 percent and 2.71 percent, respectively.
Huang also pointed out that while old economy stocks trailed behind, those linked to AI development outperformed, with Nan Ya Plastics Corp. and Formosa Plastics Corp. recording gains of 4.65 percent and 1.80 percent, respectively. In contrast, Asia Cement Corp. remained unchanged at NT$33.80, while TCC Group Holdings Co. saw a modest rise of 0.41 percent to NT$24.65.
Huang expressed confidence in continued market growth, noting robust risk appetite among local investors and predicting the Taiex could soon surpass 46,000 points. Further, foreign institutional investors purchased a net NT$10.28 billion worth of shares on the main board Tuesday, reinforcing the market's upward trajectory.