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Apple Foldable Phone Won't Save the Market; AI is the Real Driver, Says Analyst

Electronic Technology · Semiconductors · economic_daily · 2026-09-09

Analyst Kuo Che-jung argues that while Apple's upcoming foldable phone is highly anticipated, the true engine for Taiwan's stock market is the AI hardware revolution.

What Happened

Market Caution: Taiwan's stock market is experiencing a contraction in trading volume as investors wait for the upcoming Apple fall event. While the market hopes for a boost from a new foldable device, analysts suggest this will not be the primary catalyst for long-term growth.

AI Advancements: Global AI progress is accelerating rapidly, with breakthroughs in fields ranging from genomics to weather forecasting. The CEO of Arm has noted that the current bottleneck for AI development is a shortage of chips and computing power rather than software limitations.

Surging Hardware Demand: The deployment of Artificial General Intelligence (AGI) is driving astronomical demand for servers, advanced manufacturing processes, and memory. Companies linked to TSMC's capital expenditure, such as Jingcheng, NovaTek, and Gudeng, are benefiting as they control critical hardware supply chains.

Long-term Outlook: The long-term outlook for the Taiwan stock market has been upgraded, with some analysts suggesting the index could reach 100,000 points within three years. Investors are advised to look past short-term volatility and focus on high-quality, low-valuation hardware stocks.

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