News / Taiwan / economic_daily
AI Semiconductors Lead the Charge: Cathay PHLX Fund Manager Eyes Q4 Earnings and Policy Shifts
Electronic Technology · Semiconductors · economic_daily · 2026-09-23
00830
As AI semiconductors drive market momentum, Cathay PHLX Semiconductor ETF manager Lee Han-lin highlights that Q4 performance will depend on corporate earnings and capital expenditure, with the sector showing strong profit growth potential.
What Happened
Market Dynamics and Holiday Effects: As the Mid-Autumn Festival approaches, the Taiwan stock market is experiencing increased volatility due to quarter-end rebalancing and pre-holiday adjustments. Fund manager Lee Han-lin emphasizes that while trading volume may contract, the long-term market direction remains driven by global trends and fundamental industry performance rather than holiday sentiment.
Policy Implications of the US-China Summit: The upcoming US-China summit is a critical focal point for investors, as trade and technology policies are expected to influence global risk appetite. Analysts suggest that the outcomes of these discussions, alongside US tech earnings and cloud service provider capital expenditures, will dictate market sentiment throughout the fourth quarter.
Robust Semiconductor Profit Growth: Current market estimates project a 63% year-over-year profit growth for the IT sector, with semiconductors and related equipment leading at an impressive 125%. This shift indicates that the AI rally is moving beyond speculative hype toward companies with tangible earnings and strong fundamental support.
Strategic Outlook and Risk Management: The AI ecosystem has expanded to include computing power, memory, and advanced manufacturing, cementing the core role of semiconductor leaders like Nvidia and TSMC. Investors are advised to remain cautious regarding geopolitical tensions and policy uncertainties, while focusing on the long-term growth potential of the semiconductor supply chain.