Taiwanese shares closed at a new high yesterday, with artificial intelligence (AI)-related stocks in focus as investors bet that US-based AI chip designer Nvidia Corp would provide positive leads in its upcoming investor conference.
The TAIEX ended up 214.80 points, or 0.88 percent, at 24,519.90, an all-time closing high. Nvidia supplier Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, gained 1.28 percent, after its American depositary receipts rose 1.33 percent overnight.
“The US markets recovered from the day’s lows, as Nvidia shares steamed ahead before its results,” Moore Securities Investment Consulting Co (摩爾投顧) analyst Adam Lin (林漢偉) said, referring to a 1.08 percent increase in Nvidia shares overnight.
Photo: CNA
“It seemed that investors were upbeat about AI development, expecting Nvidia to give positive leads,” Lin said. “Such optimism spread to the local main board, prompting investors here to pick up AI-related stocks, led by TSMC.”
Other AI-related stocks also moved higher. AI server maker Quanta Computer Inc (廣達電腦) rose 1.51 percent, rival Wistron Corp (緯創) added 1.77 percent, power management solution provider Delta Electronics Inc (台達電子) gained 5.11 percent and cooling solution supplier Asia Vital Components Co (奇鋐科技) advanced 2.44 percent.
Bucking the upturn, iPhone assembler and AI server producer Hon Hai Precision Industry Co (鴻海精密), also known as Foxconn Technology Group (富士康科技集團), ended down 0.48 percent.
“Military concept” stocks continued to benefit from optimism over sales following the government’s announcement of plans to increase defense spending next year, Lin said.
Drone manufacturer Thunder Tiger Corp (雷虎科技) soared 10 percent, Lungteh Shipbuilding Co (龍德造船) rose 5.76 percent and aircraft maintenance service provider Air Asia Co (亞洲航空) advanced 5.79 percent.
“Turnover stayed at a relatively high level, indicating investors were willing to chase prices,” Lin said. “As a result, old-economy industries also attracted buying, adding momentum to the TAIEX.”
Turnover on the main board totaled NT$454.649 billion (US$14.87 billion) yesterday, compared with NT$514.013 billion in the previous session, Taiwan Stock Exchange data showed.
“After today’s rally, the TAIEX has moved closer to the historical intraday high of 24,551.42 [on Tuesday last week],” Lin said. “Investors should pay close attention to how the US markets react to Nvidia’s results and guidance, which will influence tech stocks here.”
Nvidia is to report second-quarter financial results early today, closely watched as a bellwether for the industry as worries about a tech bubble rise. The AI giant is also expected to provide clues on how the US-China rivalry is limiting growth.
“The company has outgrown the tech sector and become the market’s lodestar,” SPI Asset Management managing partner Stephen Innes wrote in a note.
“Analysts expect revenue to soar 53 percent to US$46 billion, but this is about more than revenue beats,” he added. “The crowd wants reassurance that the AI revolution isn’t just smoke and mirrors.”
Additional reporting by AFP
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