Taiwan shares extend momentum in wake of Nvidia H20 leads

Taipei, July 16 (CNA) Taiwan shares closed higher Wednesday, extending earlier gains as semiconductor stocks rallied following a surge in Nvidia shares on news it will soon resume sales of its H20 AI chip to China, dealers said.

After rising 0.98 percent Tuesday, the Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 206.96 points, or 0.91 percent, at 23,042.90 on Wednesday after moving between 22,923.12 and 23,106.43.

Turnover totaled NT$380.13 billion (US$12.949 billion), up from NT$319.87 billion a day earlier.

"Following their counterparts on the U.S. markets overnight, large cap semiconductor stocks attracted strong interest throughout the session, boosting turnover, as investors seized on positive leads from Nvidia," MasterLink Securities analyst Tom Tang said.

Nvidia shares rose 4.04 percent overnight on hopes that sales of the H20 chip -- a downgraded version of its Hopper lineup -- to China will improve the company's bottom line and, in turn, boost its Taiwanese suppliers through large orders, Tang said.

"Investors continued to pick up TSMC (Taiwan Semiconductor Manufacturing Co.) today, helping the Taiex jump over technical hurdles ahead of 23,000 points," Tang said.

After its American depositary receipts gained 3.62 percent overnight, TSMC, the most heavily weighted stock in Taiwan, rose 1.80 percent to close at NT$1,130.00. The stock's upturn contributed about 160 points to the Taiex's rise and sent the electronics index up 1.21 percent.

TSMC buying spread to other semiconductor stocks with smartphone IC designer MediaTek Inc. rising 1.08 percent to end at NT$1,410.00, and application specific integrated circuit (ASIC) designer AIchip Technologies Inc. soaring 6.82 percent to close at NT$3,600.00.

In addition, TSMC's ASIC design subsidiary Global Unichip Corp. gained 2.49 percent to end at NT$1,235.00.

However, other electronics stocks appeared mixed "as market sentiment remained cautious before Taiwan and the United States reach an agreement on a 'reciprocal tariff,'" Tang said.

On April 2, the Trump administration slapped a 32 percent levy on Taiwan's goods but paused its implementation and allowed negotiations for a lower tariff.

IPhone assembler Hon Hai Precision Industry Co., which also rolls out AI servers, lost 0.31 percent to close at NT$162.50, and Wistron Corp., another AI maker, fell 1.67 percent to end at NT$118.00.

Quanta Computer Inc., also an AI producer, rose 0.74 percent to close at NT$272.50, and power management solution provider Delta Electronics Inc. added 1.21 percent to end at NT$500.00.

Tang said interest among old economy stocks was uneven, citing the U.S. tariff issue.

"TSMC's movement is expected to continue to dictate the Taiex," Tang said. "I estimate the stock will keep moving up on its sound fundamentals in the near term giving support to the broader market." TSMC is scheduled to hold an investor conference Thursday.

According to the TWSE, foreign investors bought a net NT$13.84 billion worth of shares on the main board Wednesday.