Taipei: Taiwan shares experienced a significant surge on Thursday, with the benchmark Taiex index climbing 846.24 points. This increase came after the U.S. chipmaker Nvidia Corp. reported stronger-than-expected quarterly earnings, which triggered a broad rebound in AI-related stocks and led to a notable rise in Taiwan Semiconductor Manufacturing Co. (TSMC).
According to Focus Taiwan, the Taiex, which is the weighted index on the Taiwan Stock Exchange (TWSE), closed up 3.18 percent at 27,426.36. This marks the second-largest single-day points gain following a 1,608-point rally on April 10. The total turnover reached NT$577.02 billion (US$18.48 billion).
Nvidia’s report of a 62 percent revenue growth exceeded market expectations and alleviated concerns about a potential overheating in the AI sector. Additionally, reports of Washington approving the export of specific Nvidia chips to Saudi Arabia and the United Arab Emirates bolstered investor sentiment.
TSMC, the most heavily weighted stock on the local market, saw a rise of 4.30 percent to NT$1,455. Hon Hai Precision Industry Co. gained 3.28 percent to NT$236.5, while Delta Electronics Inc. increased by 6.71 percent to NT$954.
Among suppliers of AI servers, Wiwynn Corp. climbed 3.13 percent to NT$4,280, Wistron Corp. rose 4.38 percent to NT$143, and Quanta Computer Inc. added 2.62 percent to close at NT$274.
In the memory chip sector, stock performance was mixed. Nanya Technology Corp. decreased by 2.81 percent to NT$155.5, and Winbond Electronics Corp. lost 2.36 percent to NT$58 after hitting its limit-down price. Conversely, Phison Electronics Corp. jumped 5.36 percent to NT$1,180, and Innodisk Corp. rose 1.95 percent to NT$524.
Veteran analyst Wu Wen-bin noted that the day’s rebound followed a 1,366-point decline over the preceding five sessions due to fears of an AI bubble. Nvidia’s strong earnings helped alleviate these concerns, and Wu highlighted that TSMC’s performance heavily influenced the market’s trajectory. However, he cautioned that profit-taking might occur if the Taiex approaches the 27,000-28,000 range.
Taishin Securities Investment Advisory Vice President Tony Huang commented that Nvidia’s outlook and U.S. export approvals drove significant gains in optical communications, AI servers, PCB, and related stocks. He emphasized that for the Taiex to sustain a medium-term uptrend, it would need to surpass its 20-day moving average.
Foreign institutional investors bought a net NT$13.11 billion worth of shares on Thursday, as indicated by TWSE data.