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Taiwan's 'Thousand-Dollar' Stocks Plummet as AI Sector Faces Valuation Reset
Electronic Technology · Semiconductors · economic_daily · 2026-11-05
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Taiwan's high-priced stocks are undergoing a sharp correction, with the number of 'thousand-dollar' shares dropping from 58 to 39 as investors retreat from AI-linked equities.
What Happened
Massive Valuation Correction: Taiwan's high-priced stock segment is experiencing a significant downturn, with the number of shares priced above NT$1,000 falling from a peak of 58 to just 39. Key AI-related stocks, including Aspeed and Global Unichip, hit limit-down levels as market sentiment soured.
Institutional Sell-off: Heavy selling pressure from foreign institutional investors has been the primary driver of this decline. While domestic investment trusts have remained net buyers, the massive outflows from foreign capital have severely impacted the liquidity and valuation of high-end electronics stocks.
Global Tech Divergence: Despite a rally in the broader US market following the mid-term elections, the semiconductor sector has struggled, with the Philadelphia Semiconductor Index declining. The decoupling of Taiwanese tech stocks from US market trends highlights ongoing investor anxiety regarding AI infrastructure investments and regulatory risks.
Key Market Outlook: Investors are now closely monitoring TSMC's ability to stabilize the broader market. Future performance will depend heavily on the tangible returns from AI capital expenditures and potential shifts in US technology policies that could impact the global supply chain.