Taiwan shares hit new high, led by TSMC on Nvidia-Open AI deal

Taipei, Sept. 23 (CNA) Shares in Taiwan closed at another record high Tuesday, with Taiwan Semiconductor Manufacturing Co. (TSMC) extending its streak of record finishes amid optimism over artificial intelligence applications following Nvidia Corp.'s announcement of plans to invest up to US$100 billion in OpenAI.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 366.77 points, or 1.42 percent, at 26,247.37 after moving between 26,041.69 and 26,307.30. Turnover totaled NT$529.02 billion (US$17.50 billion).

"Strong buying in TSMC emerged soon after the market opened as investors were upbeat that the chipmaker will become one of the largest beneficiaries of the Nvidia-OpenAI deal, which aims to buy advanced chips used in data centers," Concord Securities analyst Kerry Huang said.

After its American depositary receipts (ADRs) rose 2.93 percent and Nvidia shares gained 3.97 percent overnight, TSMC, the most heavily weighted stock on the market, rose 3.47 percent to close at the day's high of NT$1,340.00, sending the electronics index higher by 1.98 percent.

IC packaging and testing services provider ASE Technology Holding Co. gained 1.16 percent to end at NT$174.50, while smartphone IC designer MediaTek Inc. fell 2.14 percent to close at NT$1,375.00.

"The Nvidia investment in OpenAI is also expected to boost demand for AI servers," Huang said.

iPhone assembler and AI server maker Hon Hai Precision Industry Co., second to TSMC in terms of market value, gained 2.31 percent to end at NT$221.00. Quanta Computer Inc., another AI server supplier, added 1.96 percent to close at NT$286.50.

Meanwhile, Delta Electronics Inc., a provider of power management solutions for AI devices, lost 1.54 percent to end at NT$893.00.

"Today's gains on the main board appeared uneven, with many non-tech stocks moving in weakness as the spotlight completely focused on large-cap tech stocks," Huang said.

In the old economy sector, Evergreen Marine Corp., Taiwan's largest container shipper, lost 0.82 percent to close at NT$182.00. Rivals Yang Ming Marine Transport Corp. and Wan Hai Lines Ltd. shed 1.25 percent and 1.77 percent, respectively, to end at NT$55.20 and NT$77.90.

In addition, Shihlin Electric & Engineering Corp. lost 0.81 percent to close at NT$183.00, while Teco Electric & Machinery Co. soared 10 percent, the maximum daily increase, to end at NT$94.00 on its partnership with Hon Hai to boost AI infrastructure capabilities.

In the financial sector, which rose only 0.06 percent, Fubon Financial Holding Co. dropped 0.23 percent to close at NT$88.40, while Cathay Financial Holding Co. ended up 0.30 percent at NT$66.20.

Since September, the Taiex has soared 2,014.27 points, or 8.31 percent. "Investors should stay alert over possible profit-taking after recent solid gains. But if U.S. tech stocks continue to steam ahead, the impact could be limited," Huang said.

According to the TWSE, foreign institutional investors bought a net NT$10.64 billion worth of shares on the main board Tuesday.