Highlights

The Taiwan Stock Exchange faced significant movements with a drop of 319.86 points, breaking a key support line. Most notably, foreign investors shifted from buyers to sellers before the 520 event. NVIDIA announced partnerships with major Taiwanese players like Foxconn and TSMC, spearheading AI infrastructure advancements. Exciting developments included the establishment of NVIDIA's international headquarters in Taipei and a collaborative AI supercomputing center.

Sentiment Analysis

• The overall sentiment in the market is mixed, reflecting cautious optimism about future developments in AI infrastructure and strategic corporate movements.
• There is concern among investors regarding the stock market drop, which influences a more guarded market sentiment.

Article Text

On May 19th, the Taiwan stock market witnessed a notable downturn as it closed at 21,523.83 points, marking a decline of approximately 1.4% and breaking below a key five-day moving average. The total market turnover was recorded at NT$326.256 billion, while institutional investors were net sellers, with foreign investors reversing an 11-day buying streak to sell off stocks worth NT$130.5 billion. Stocks from Innolux, Yang Ming Marine Transport, and Compal Electronics saw significant sell-offs.

NVIDIA's CEO Jensen Huang delivered a keynote the same day, showcasing a lineup of prominent Taiwanese suppliers and institutions including ADATA and Phison, who were mentioned for the first time. Key figures from the tech industry, such as real-time Taiwan Semiconductor Manufacturing Company (TSMC) and financial entities like Cathay Financial Holdings and E.Sun Commercial Bank, were also highlighted.

The Computex Taipei, kicking off on May 20, saw global attention, with NVIDIA revealing its plan to establish the NVIDIA Constellation headquarters in Beitou, Shilin. This announcement triggered a stock surge, particularly benefiting local construction companies like Shihlin Paper.

In partnership with Foxconn, TSMC, and the National Applied Research Laboratories, NVIDIA plans to build an advanced AI base in Taiwan. This collaborative effort is set to house a state-of-the-art "AI Factory" supercomputing center, reinforcing Taiwan's commitment to innovation in AI technology.

The air freight sector also faces shifts, highlighted by EVA Air's forecast of a potential surge in air cargo due to fluctuating tariffs between the US and China. Concurrently, Yong Feng Yu Paper Manufacturing announced its initiative to help the Taoyuan Guei Shan water resource treatment center transition into Taiwan's first green energy biogas plant, aiming for official energy sales approval later this year.

These developments indicate significant shifts within Taiwan's economic landscape, driven by strategic investments and international collaborations.

Key Insights Table

Aspect	Description
Market Decline	Taiwan stocks fell 319.86 points, breaking key support levels before significant financial events.
NVIDIA's Strategic Moves	Announced partnerships with Foxconn and TSMC to advance AI infrastructure in Taiwan.
New Headquarters	NVIDIA's international HQ named 'Constellation' to be established in Taipei.
AI Infrastructure	NVIDIA and partners to build an advanced AI supercomputing center in Taiwan.

Last edited at：2025/5/20