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AI Infrastructure Concerns Emerge Post-Election, Setting Stage for Potential Taiwan Stock Rebound

Electronic Technology · Electronic Components · economic_daily · 2026-11-05

With U.S. political gridlock easing and oil prices retreating, Taiwan stocks are showing signs of a technical rebound despite lingering concerns over AI infrastructure development.

What Happened

Political Shifts and Oil Price Impact: Following the Democratic party's control of Congress, expectations for diplomatic resolutions in the Middle East have caused oil prices to drop by over 8%, helping to ease global inflationary pressures and fueling a rally in the Dow Jones.

AI Infrastructure and Industrial Impact: Concerns over stricter approval processes for AI data centers have weighed on tech stocks like Micron and Nvidia. Additionally, a fire at Panasonic's Hukou plant in Taiwan is expected to impact global high-end multilayer board capacity, potentially creating short-term order shifts for CCL manufacturers.

Technical Outlook and Capital Flow: The Taiwan market has seen increased trading volume and a long lower shadow, with the KD indicator showing signs of a potential reversal. While foreign investors have been net sellers, the market's entry into oversold territory suggests room for a technical rebound.

Investment Strategy: Investors are advised to maintain flexibility, focusing on companies with strong October revenue and positive Q4 outlooks. Long-term tracking of advanced packaging, PCB supply chains, thermal management, and financial stocks remains recommended.

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