Taiwan shares end up, led by AI stocks ahead of Nvidia's results

Taipei, Aug. 27 (CNA) Shares in Taiwan closed higher Wednesday, with artificial intelligence-related stocks in focus as investors bet that U.S.-based AI chip designer Nvidia Corp. will provide positive leads in its upcoming investor conference scheduled for early Thursday morning Taipei time, dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 214.80 points, or 0.88 percent, at 24,519.90 after moving between 24,410.08 and 24,539.88. Turnover totaled NT$454.65 billion (US$14.91 billion).

"The U.S. markets recovered from the day's lows, as Nvidia shares steamed ahead before its results," Moore Securities Investment Consulting analyst Adam Lin said, referring to a 1.08 percent increase in Nvidia shares overnight.

"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 (Taiwan Semiconductor Manufacturing Co.)."

After its American depositary receipts rose 1.33 percent overnight, TSMC, the most heavily weighted stock on the local market, which produces chips for Nvidia, gained 1.28 percent to close at NT$1,190.00. TSMC's rise contributed about 120 points to the Taiex and sent the electronics index 1.22 percent higher.

Among other AI-related stocks, AI server maker Quanta Computer Inc. rose 1.51 percent to end at NT$269.00, while rival Wistron Corp. added 1.77 percent to close at NT$115.00. In addition, power management solution provider Delta Electronics Inc. gained 5.11 percent to end at NT$720.00, and cooling solution supplier Asia Vital Components Co. advanced 2.44 percent to close at NT$1,050.00.

Bucking the upturn, iPhone assembler and AI server producer Hon Hai Precision Industry Co. ended down 0.48 percent at NT$208.00.

"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."

Lin noted that "military concept" stocks continued to benefit from optimism over sales following the government's announcement of plans to increase defense spending next year.

Drone maker Thunder Tiger Corp. soared 10 percent, the maximum daily increase, to close at NT$177.00. Meanwhile, Lungteh Shipbuilding Co. and aircraft maintenance service provider Air Asia Co. rose 5.76 percent and 5.79 percent, respectively, to end at NT$147.00 and NT$64.00.

Elsewhere in the old-economy sector, Fortune Electric Co. gained 2.95 percent to close at NT$628.00, and Shihlin Electric & Engineering Corp. added 1.38 percent to end at NT$183.50. On the other hand, JSL Construction & Development Co. lost 1.64 percent to close at NT$77.90, while Highwealth Construction Corp. fell 0.72 percent to end at NT$41.50.

Underperforming the Taiex, the financial sector lost 0.32 percent, with Cathay Financial Holding Co. shedding 1.26 percent to close at NT$62.60, and Fubon Financial Holding Co. falling 1.61 percent to end at NT$85.70.

"After today's rally, the Taiex has moved closer to the historical intraday high of 24,551.42 (seen on Aug. 19)," Lin said. "Investors should pay close attention to how the U.S. markets react to Nvidia's results and guidance, which will influence tech stocks here."

Despite the Taiex's gains, foreign institutional investors sold a net NT$1.95 billion worth of shares on the main board on Wednesday, according to the TWSE.