Taiwan Shares Soar over 600 Points After U.S. Rally

Why It Matters

The rally underscores Taiwan’s pivotal role in the global AI supply chain, linking U.S. market sentiment to local chip makers. Investor caution on turnover and holiday timing signals potential volatility ahead.

Key Takeaways

• Taiex up 1.96% to 32,404 points.
• Turnover fell to NT$630.88 billion, below five‑day average.
• AI stocks like MediaTek, Winbond surged over 7‑10%.
• TSMC rose 1.97% but lost intraday gains.
• Analysts recommend 30% cash ahead of Lunar New Year.

Pulse Analysis

The Taiex’s 1.96% jump to 32,404 points illustrates how closely Taiwan’s equity market tracks U.S. equity momentum, especially after the Dow and Nasdaq posted gains of roughly 2.5% and 2.2% respectively. This cross‑border linkage is driven by the semiconductor sector, where Taiwanese firms supply the majority of chips powering artificial‑intelligence applications worldwide. As U.S. investors renewed confidence in growth‑oriented tech stocks, capital flowed into Taiwan’s large‑cap electronics names, lifting the index by more than 600 points in a single session. The surge also narrowed the gap with regional peers, underscoring Taiwan’s appeal for AI‑focused investors.

AI‑centric stocks led the rally, with MediaTek climbing 7% and Winbond surging 10% to record highs, while TSMC, the market’s heavyweight, added nearly 2% despite trimming an intraday peak. The outsized moves reflect accelerating demand for high‑performance processors, 5G‑enabled smartphones, and data‑center accelerators that underpin generative‑AI services. Analysts note that TSMC’s share of market value—over 40%—means its performance heavily weights the Taiex, and any shift in AI spending patterns can swing the index sharply. Analysts expect TSMC’s upcoming advanced‑node fab to boost earnings and reinforce the AI supply chain.

Even as prices rose, turnover slipped to NT$630.88 billion, well under the five‑day average of NT$714 billion, suggesting a more measured buying stance ahead of the Lunar New Year holiday. Market strategists are urging investors to hold roughly 30% of assets in cash, positioning for post‑holiday buying opportunities while hedging against potential geopolitical or supply‑chain shocks. The combination of strong AI demand, U.S. market influence, and seasonal liquidity constraints creates a nuanced risk‑reward profile for both domestic and foreign participants in Taiwan’s stock market. If geopolitical risks recede, foreign inflows may rise, supporting the index beyond the holiday lull.

Taiwan shares soar over 600 points after U.S. rally

02/09/2026 05:44 PM · By Frances Huang

![CNA file photo]

Taipei, Feb. 9 (CNA) – Shares in Taiwan closed more than 600 points higher Monday, as a strong rally in the United States late last week prompted investors to buy large‑cap electronics stocks, dealers said.

The Taiex, the Taiwan Stock Exchange's (TWSE) benchmark weighted index, ended up 621.70 points, or 1.96 percent, at 32,404.62 after moving between 31,956.21 and 32,666.06.

However, turnover totaled NT$630.88 billion (US$19.96 billion), down from the average of NT$714.41 billion in the previous five trading sessions.

“The Taiex followed U.S. markets and stayed well above the 32,000‑point mark today,” Hua Nan Securities analyst Kevin Su said, referring to a 2.47 percent rise in the Dow Jones Industrial Average and a 2.18 percent gain on the tech‑heavy Nasdaq index.

“Enthusiasm over AI development triggered buying both at home and abroad,” Su added.

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for more than 40 percent of total market value and produces most of the chips used in AI devices, rose 1.97 percent to close at NT$1,815.00, although it retreated from an intraday high of NT$1,835.00.

“TSMC failed to hold onto all of its earlier gains as investors turned cautious ahead of the Lunar New Year holiday, amid concerns over possible negative developments overseas,” Su said. “Today's reduced turnover also reflected that sentiment.”

Among other AI‑related stocks, smartphone IC designer MediaTek Inc. rose 7.02 percent to close at NT$1,830.00, while memory‑chip supplier Winbond Electronics Corp. surged 10 percent, the daily maximum, to end at NT$107.50.

AI‑related buying also pushed Nan Ya Printed Circuit Board Corp. up 10 percent to NT$416.50 and lifted co‑packaged optics device supplier LandMark Optoelectronics Corp. by 9.50 percent to NT$1,095.00.

Su said old‑economy stocks were largely overshadowed by the technology sector, although some industries tied to AI development attracted interest, citing the petrochemical sector, which rose 1.99 percent.

Nan Ya Plastics Corp. rose 6.12 percent to close at NT$78.00 on optimism surrounding its production of fiber cloth used in printed circuit boards, while Formosa Plastics Corp. added 1.97 percent to close at NT$46.65.

In the financial sector, which gained 1.10 percent on improving fundamentals, Cathay Financial Holding Co. rose 1.98 percent to NT$77.20, while Fubon Financial Holding Co. gained 1.52 percent to end at NT$93.80.

Su advised investors to keep at least 30 percent of their portfolios in cash, waiting for buying opportunities after the Lunar New Year holiday.

According to the TWSE, foreign institutional investors bought a net NT$24.77 billion worth of shares on the main board Monday.