Taiwan shares rebound led by AI-related stocks on soaring Nvidia

Taipei, Feb. 11 (CNA) Shares in Taiwan staged a rebound Tuesday after a slump a session earlier as artificial intelligence-related stocks left their previous weakness behind on the back of a soaring AI chip designer Nvidia Corp. on the U.S. markets overnight, dealers said.

The Taiex, the Taiwan Stock Exchange's (TWSE) weighted index, ended up 131.91 points, or 0.57 percent, at 23,384.05 after moving between 23,289.76 and 23,485.51. Turnover totaled NT$346.64 billion (US$10.56 billion).

The market opened up 0.30 percent and buying accelerated with AI server makers including iPhone assembler Hon Hai Precision Industry Co. and Quanta Computer Inc. in focus to push up the Taiex to the day's high, up more than 230 points at one point as investors took cues from a 2.87 percent increase in Nvidia shares on Monday, dealers said.

However, the main board failed to sustain all of the earlier gains by the end of the session on the capped upturn by semiconductor stocks, which dealers attributed to lingering concerns over possible massive tariffs on chips by U.S. President Donald Trump, dealers added.

"These AI servers and related stocks had been consolidated for some time. The higher Nvidia price simply prompted bargain hunters to jump into the trading floor today," Mega International Investment Services analyst Alex Huang said.

Hon Hai, the No. 2 stock in terms of market value, rose 2.87 percent to close at NT$179.00, overcoming the nearest technical resistance ahead of the 20-day moving average of NT$176.00, and Quanta also gained 2.38 percent to end at NT$258.00 after jumping over the hurdles ahead of NT$252.80.

In addition, Wistron Corp., another AI server supplier, added 3.85 percent to close at NT$108.00, and Wistron's cloud-enabled services subsidiary Wiwynn Corp. ended up 2.30 percent at NT$2,225.00.

"Judging from today's movement, I think some investors were reluctant to hold semiconductor stocks for the moment as Trump has threatened to impose massive tariffs on chips," Huang said, referring to the capped gains posted by contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock here, which rose only 0.45 percent to close at NT$1,111.00 after hitting NT$1,115.00.

Smartphone IC designer MediaTek Inc. rose 2.03 percent to end at NT$1,510.00, and IC packaging and testing services provider ASE Technology Holding Co. added 0.60 percent to close at NT$167.50, while memory chip supplier Nanya Technology Corp. lost 1.43 percent to end at NT$27.60.

In the old economy sector, select AI-powered robotics makers also rode the waves of Nvidia gains with machine tool maker Hiwin Technologies Corp. up 6.99 percent to close at NT$344.50, and electric machinery producer Shihlin Electric & Engineering Corp. up 4.08 percent to end at NT$178.50.

Elsewhere in the old economy sector, Formosa Plastics Corp. rose 1.34 percent to close at NT$34.00, and Formosa Petrochemical Corp. gained 1.76 percent to end at NT$34.70.

In the financial sector, which rose 0.17 percent, Cathay Financial Holding Co. rose 1.63 percent to close at NT$68.50, and Fubon Financial Holding Co. ended up 0.43 percent at NT$93.80.

"TSMC will hold a board meeting in the United States this week. The market has been cautious about what promises the chipmaker will make to avoid Trump's tariffs," Huang said.

According to the TWSE, foreign institutional investors bought a net NT$9.30 billion worth of shares on the local main board Tuesday.