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AI Investment Skepticism Hits Taiwan Stocks; OTC Index Plunges Over 6%
Electronic Technology · Semiconductors · economic_daily · 2026-11-03
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Concerns over the ROI of AI infrastructure have triggered a sharp sell-off in Taiwan's OTC market, with the index falling over 20% from its peak.
What Happened
Market Sentiment Deterioration: The Taiwan OTC index plummeted 6.42%, breaking below its annual moving average and marking a decline of over 20% from its October peak. Numerous high-priced stocks hit their daily limit-down, reflecting widespread panic among investors.
AI Investment Skepticism: Investors are increasingly questioning whether massive capital expenditures in AI infrastructure will yield tangible returns. Alphabet's recent earnings report, which showed advertising growth impacted by AI search patterns, has intensified concerns regarding the sustainability of tech spending.
Financing Pressures: Oracle's recent large-scale debt issuance has raised alarms about corporate debt burdens in a high-interest-rate environment, leading to a sharp drop in its share price. Rising financing costs are putting significant pressure on valuations across the semiconductor and tech sectors.
Global Market Correction: Weakness in the Philadelphia Semiconductor Index and the Nasdaq has spilled over into the Taiwan market, weighing heavily on major tech stocks. Faced with international capital outflows and waning confidence, Taiwan stocks are undergoing a significant correction.