Taipei: Shares in Taiwan reached new heights at the close of the Friday session, with Taiwan Semiconductor Manufacturing Co. (TSMC) achieving a record closing high. The surge was fueled by enthusiasm surrounding developments in artificial intelligence, according to market dealers.
According to Focus Taiwan, the Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), rose by 382.67 points, or 1.45 percent, closing at a high of 26,761.06. This increase came after the index had dipped to a low of 26,410.03 earlier in the day. The total turnover reached NT$463.09 billion, equivalent to approximately US$15.23 billion.
Hua Nan Securities analyst Kevin Su indicated that the main board has consistently been setting new closing highs, largely due to investor optimism about AI applications. This trend follows the strong performance of U.S.-based AI chip designer Nvidia Corp.’s shares. Su noted that TSMC played a pivotal role in the Taiex’s upward movement, as its stock appeared more affordable compared to Nvidia, with a price-to-earnings multiple below 25, compared to Nvidia’s over 30.
TSMC, the most significant stock in terms of weight on the index, rose by 2.56 percent to close at NT$1,400.00. This increase contributed approximately 280 points to the Taiex’s rise and boosted the electronics index by 2.08 percent. The positive momentum in TSMC shares extended to other prominent semiconductor stocks, with MediaTek Inc. climbing 3.12 percent to NT$1,320.00. Memory chip suppliers also benefited, with Winbond Electronics Corp. soaring 7.78 percent to NT$38.80 and Nanya Technology Corp. gaining 4.14 percent to NT$83.00.
Su mentioned that the AI excitement also lifted other hardware suppliers. Quanta Computer Inc., an AI server manufacturer, rose by 2.04 percent to NT$300.00, while competitor Wistron Corp. increased by 2.68 percent to NT$153.50. However, iPhone assembler and AI server supplier Hon Hai Precision Industry Co. saw a more modest gain of 0.44 percent, closing at NT$226.50.
Despite the strong performance of tech stocks, Su pointed out that non-tech stocks showed weakness. Recent furlough reports indicated that the old economy industry has been adversely affected by U.S. tariffs. Formosa Plastics Corp. dropped 2.27 percent to NT$36.65, and Formosa Chemicals and Fibre Corp. fell 3.00 percent to NT$27.50. China Steel Corp., Taiwan’s largest steel maker, decreased by 1.04 percent to NT$19.00, while Chung Hung Steel Corp. remained unchanged at NT$15.50.
Teco Electric and Machinery Co. experienced a slight decline of 0.87 percent to NT$113.50 due to profit-taking from recent gains, while Fortune Electric Co. rose by 1.60 percent to NT$572.00.
In the financial sector, which saw a decline of 0.63 percent, Fubon Financial Holding Co. dropped 1.03 percent to NT$86.50, and Cathay Financial Holding Co. remained unchanged at NT$65.00.
Su also mentioned that the release of the U.S. September nonfarm payrolls data was expected to provide further insight into the Federal Reserve’s rate cut cycle.
According to TWSE, foreign institutional investors purchased a net NT$16.96 billion worth of shares on the main board on Friday.
