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Taiwan Stocks Consolidate: AI and Power Supply Chains Remain in Focus
Electronic Technology · Semiconductors · economic_daily · 2026-09-11
Amid market volatility driven by geopolitical tensions and interest rate uncertainty, analysts recommend focusing on high-growth AI supply chains and power infrastructure.
What Happened
Market Overview: The Taiwan stock market is currently experiencing high-level consolidation, hampered by insufficient trading volume and weakness in major electronic stocks. Rising oil prices due to Middle East instability and ongoing uncertainty regarding U.S. interest rate policies have led investors to adopt a more cautious, wait-and-see approach.
Macroeconomic Outlook: Given the contrast between a weak macro environment and strong industrial profitability, the market is expected to remain range-bound through the fourth quarter. Analysts estimate the index will likely fluctuate between 43,000 and 49,000 points, making stock selection increasingly challenging.
Corporate Earnings: Second-quarter earnings for listed companies were robust, with net profits hitting record highs, largely driven by stronger-than-expected demand for AI. The AI supply chain, spanning advanced manufacturing, servers, and memory, has entered a phase of accelerated profit growth.
Investment Strategy: Investors are advised to maintain a core position in AI-related sectors, such as cloud components, intellectual property, optical communications, and advanced packaging equipment. Additionally, the power supply chain remains a key area of interest within the traditional industrial sector for those seeking growth at reasonable valuations.