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Taiwan Stocks Pull Back, but AI-Linked Stocks Chang Wah and PSMC Defy the Trend
Electronic Technology · Semiconductors · economic_daily · 2026-08-31
1717, 6770
Despite a broader market decline in Taiwan, shares of Chang Wah and PSMC surged on the back of strong AI server and semiconductor material demand.
What Happened
Market Overview: The Taiwan stock market faced a pullback on the 31st, closing lower by 202 points amid negative sentiment from US markets. Despite the broader decline, the index managed to hold above all major moving averages, indicating underlying resilience.
Resilient Performers: Amidst a market where decliners significantly outnumbered gainers, Chang Wah and PSMC stood out with strong gains. These stocks attracted investor interest due to their specific exposure to AI-related growth themes.
Chang Wah's Growth Drivers: Chang Wah is benefiting from rising demand for AI servers, ABF substrates, and advanced packaging materials. Analysts project significant earnings growth for the company over the next two years as it pivots toward high-end semiconductor materials.
PSMC Outlook: PSMC has seen improved margins due to rising memory prices and foundry service rate hikes. Market experts anticipate that the ongoing AI boom will continue to drive demand for logic and memory chips, fueling further operational growth for the company.