Taiwan Stock Market Valuation Soars to 88 Trillion: Expect Volatility Next Week

Taiwan Stock Market Valuation Soars to 88 Trillion: Expect Volatility Next Week

Table of Contents




You might want to know



  • How did Taiwan's stock market achieve a record valuation?

  • What are the risks associated with the current market trend?



Main Topic


The Taiwan stock market experienced a significant surge this week, although there were only three trading sessions. Driven by strong performances in key technology stocks, the market saw a considerable rise of 238.24 points on Friday, closing at 27,301.92 points. Intra-day, it hit a new all-time high of 27,463.12 points. Over the week, the index climbed by 2.02%, equating to a gain of 540.86 points, with an average daily turnover of NT$541.4 billion. The total market capitalization of listed companies reached an impressive NT$88.16 trillion.


Industry experts predict that the Taiwan stock market will experience continued upward momentum, characterized by sector rotations in the coming week. However, it's crucial to monitor potential short-term overheating trends that might arise.


Liao Bing-Kun, fund manager of PGIM Prudential High Growth Fund, pointed out that the buoyant U.S. market and ongoing developments in artificial intelligence (AI) are bolstering investor sentiment. The market was further invigorated by optimistic forecasts for AI chip demand, shared by NVIDIA CEO Jensen Huang. The strong technical indicators for the Taiwan market, such as its position firmly above medium to long-term moving averages, have supported the bullish trend. A key observation is the substantial increase in foreign futures short positions, warranting caution against short-term market fluctuations.


Liao noted that post-U.S. tariff wars have redefined global dynamics, resulting in three long-term trends: the AI and nuclear technologies rise focusing on productivity, the defense sector underpinning power struggle, and the financial sector's evolution featuring gold and stablecoins. Remarkably, Taiwan boasts one of the most comprehensive AI supply chains globally, which is a pillar supporting the ongoing bullish trend due to its strong fundamental and profit backdrop.


In noteworthy developments, AI server energy consumption has soared, necessitating a complete overhaul of power infrastructure from computing chip power to data center supply. According to institutional studies, the global AI server power market is projected to expand at a compound annual growth rate of 92% from 2025 to 2030. NVIDIA's new Rubin platform with GPUs demanding up to 3.6 kW has prompted a transition to 800V high-voltage direct current (HVDC) systems, which are anticipated to become mainstream over traditional 480V AC, reducing energy consumption and voltage loss, subsequently allowing Taiwanese manufacturers to capitalize on AI power solutions.


Liao maintains a favorable outlook for the bulls but advises vigilance on trading volume movements around the NT$500 billion mark. A potential rise to over NT$600 billion could signal a market overheating scenario.



Key Insights Table



























Aspect Description
Market Record The Taiwan stock index soared to a new record high, closing at 27,301.92 points.
Sector Rotation Predicted market dynamics next week with possible sector-specific shifts.
AI Impact Key role of AI in Taiwanese market growth, especially in server power systems.
Risk Monitoring Alert on handling potential excessive market heat and foreign short positions.


Afterwards...


Looking forward, the continuous enhancement of AI and energy systems suggests significant opportunities for Taiwan. Focused attention on innovative technology developments and strategic risk assessments will be crucial. As global trends evolve, Taiwan's position as an AI powerhouse could signify robust economic growth through engaging with cutting-edge technologies and upgrading infrastructure systems.

Last edited at:2025/10/11
#Nvidia#tariff

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