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Nvidia Earnings Spark 663-Point Rally in Taiwan Stocks as AI Sector Leads the Charge

Electronic Technology · Semiconductors · economic_daily · 2026-08-27

Taiwan stocks surged 663 points to 45,832, driven by Nvidia's strong earnings report and cooling market risk aversion, with AI-related stocks leading the rebound.

What Happened

Nvidia Earnings Boost: Nvidia's latest quarterly results exceeded market expectations, with the CFO projecting a 70% year-over-year revenue growth for fiscal 2028. CEO Jensen Huang highlighted robust demand for AI infrastructure, providing a significant catalyst for the global AI supply chain and boosting investor sentiment in Taiwan.

Market Rally: The Taiwan Weighted Index staged a strong recovery, closing up 663 points at 45,832 with trading volume expanding to 804.2 billion TWD. The market displayed a classic bullish signal of rising prices and volume, with key stocks like Largan and Alchip hitting the daily limit.

Technical Outlook: The index has reclaimed all major moving averages, effectively neutralizing previous downward pressure. Technical indicators such as KD and RSI have turned upward from low levels, while the MACD histogram expansion confirms that bullish momentum is rapidly building.

Risks and Strategy: While upcoming events like the Apple autumn event and the semiconductor exhibition provide positive catalysts, investors should remain cautious. High levels of foreign institutional short positions in index futures and uncertainty surrounding Fed policy suggest potential volatility, favoring a focus on liquid, large-cap AI stocks.

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