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Taiwan Stocks Plunge 784 Points; Analysts Advise Focusing on AI Supply Chain
Electronic Technology · Semiconductors · economic_daily · 2026-09-02
Following a sharp 784-point decline in the Taiwan market, analysts recommend buying into AI-related sectors like CPO, ABF substrates, and cooling technology.
What Happened
Market Correction: Escalating tensions between the U.S. and Iran, coupled with rising oil prices, have weighed heavily on global markets and triggered a 784-point drop in the Taiwan index. While short-term momentum has weakened, the market is expected to find support at the monthly and quarterly moving averages.
Sector Performance: Despite the broader market downturn, the optoelectronics sector showed resilience, buoyed by CPO developments and positive news from Apple. Other electronics segments faced pressure, though the long-term outlook for AI remains intact.
Investment Focus: Analysts recommend maintaining a neutral-to-bullish stance, focusing on AI server upgrades, advanced packaging, ASIC, and CPO. Additionally, demand for PCB and ABF substrates, alongside advancements in chip cooling technology, remains a key area for long-term growth.
Strategic Guidance: Investors are advised to accumulate positions on dips while monitoring U.S. macroeconomic data and Treasury yields. Foreign institutional activity will remain a critical factor in determining the market's range-bound performance.