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Taiwan Stocks Still in Bull Phase: Analyst Chu Cheng-chih Advises Buying the Dip
Electronic Technology · Semiconductors · economic_daily · 2026-08-21
Market expert Chu Cheng-chih suggests that the Taiwan stock market's upward trend remains intact, advising investors to look for the next high-growth leader during the current consolidation phase.
What Happened
Market Outlook: The Taiwan stock market remains in a long-term bull phase despite recent volatility driven by foreign institutional selling and rising U.S. Treasury yields. With strong corporate earnings reported for the first half of the year, the market is expected to consolidate before potentially targeting the 50,000-point mark.
Capital Flows and Investor Sentiment: Domestic investors have played a pivotal role in driving the market, often counteracting foreign institutional outflows. While retail investors in Korea have faced significant losses from leveraged ETFs, local investors are advised to avoid excessive leverage and remain patient as the market establishes a solid support level.
AI Supply Chain Leaders: High-priced stocks like King Slide and Global Unichip continue to lead the market, reflecting the robust demand for AI servers and custom ASIC chips. As Cloud Service Providers (CSPs) increase their investment in proprietary silicon, IP and optical communication sectors are positioned for sustained growth.
Emerging Tech Trends: The focus of AI infrastructure is shifting toward power management and robotics, with major Taiwanese firms integrating into Nvidia’s 800 VDC power ecosystem. Additionally, the rise of humanoid robotics, highlighted at recent industry exhibitions, presents new opportunities for companies like Advantech and Quanta to expand their market influence.