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Nvidia Earnings Eyed as Taiwan Stocks Rally; Analysts Warn of Volume Hurdles

Electronic Technology · Semiconductors · economic_daily · 2026-08-26

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Taiwan stocks surged on Nvidia earnings optimism, but analysts advise caution, suggesting a 50% cash position until volume confirms a breakout above 46,000.

What Happened

Market Performance: Taiwan stocks staged a strong rebound on August 26, with the Taiex index climbing 663.16 points to close at 45,832.62. Trading volume expanded to 804.2 billion TWD, led by heavyweights like TSMC and MediaTek, marking a significant two-day recovery.

Analyst Perspective: First Capital Investment Consulting Chairman Huang Yi-ting noted that while easing Middle East tensions and a positive US market provided a tailwind, significant uncertainties remain. Investors are advised to maintain a 50% cash position to mitigate risks from upcoming central bank events and inflation data.

Technical Hurdles: The index is currently approaching the heavy resistance zone near 46,000 points. Analysts emphasize that without a sustained increase in trading volume to the 1.1–1.2 trillion TWD range, the market will likely struggle to break through and may instead continue a volatile upward trend.

Future Outlook: Market attention is firmly fixed on Nvidia's upcoming earnings report, which is expected to dictate the trajectory of AI-related stocks. Investors should closely monitor volume trends and macroeconomic indicators to gauge the sustainability of the current rally.

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