"It's very much different from last year," Wu said.
"The war is over and confidence is picking up."
US consumer confidence climbed to its highest in six months in May. Interest-rate cuts by the European Central Bank have also added to the optimism, analysts said.
TSMC chairman Morris Chang (
His company forecasts its sales will rise 20 percent this year.
Some gains in "second- and third-line" stocks such as Singapore-based Chartered Semiconductor Manufacturing Ltd (
Chartered, which is heading for its 10th straight unprofitable quarter, has risen 49 percent since April 28. The stock fell 0.5 percent today to S$0.97 .
The rally has "some fundamental truth behind it, but valuations seem to be a bit stretched," said David Poh, a Singapore-based money manager with Alliance Capital Management, which invests US$9 billion in Asia.
"If the market continues to rally, I'll be trimming my positions into strength," he said.
Others say they plan to hold on. Chipmakers, chip-testers and makers of flat-panel displays such as AU Optronics Corp (友達光電) may continue rising, said Vincent Lai, who helps manage the equivalent of US$865 million at HSBC Asset Management Taiwan.
AU Optronics shares rose 1.2 percent today to NT$24.5. "The technology rally still has some upside potential," Lai said.
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