Taiwan shares end at almost 28,300 points amid Nvidia's AI optimism

Taipei, Oct. 29 (CNA) Shares in Taiwan moved sharply higher to close at almost 28,300 points Wednesday as U.S.-based artificial intelligence chip designer Nvidia Corp.'s upbeat comments on artificial intelligence sparked strong buying in local electronics heavyweights, dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 345.63 points, or 1.24 percent, at 28,294.74 after fluctuating between 28,139.65 and 28,395.31. Turnover totaled NT$578.01 billion (US$18.91 billion).

The market opened up 0.75 percent to breach the 28,000 point mark and momentum continued with AI stocks. In focus was contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), bolstered by an almost 5 percent overnight surge in Nvidia shares, dealers said.

In a keynote speech at Nvidia's GTC technology conference, the company's CEO Jensen Huang said the chip designer has secured US$500 billion in bookings for its AI chips.

Huang also announced a series of partnerships for future AI development, including its cooperation with Finnish company Nokia.

"Huang's keynote speech showed the AI boom will continue, easing worries over a bubble," Cathay Futures Consultant analyst Tsai Ming-han said.

"It was no surprise that AI-related stocks steamed ahead, led by TSMC, one of Nvidia's most important partners," Tsai said.

TSMC, the most heavily weighted stock here, rose 2.03 percent to close at NT$1,505.00, contributing about 240 points to the Taiex's rise and sending the electronics sub-index up 1.67 percent.

Buying spread to other semiconductor stocks, with IC packaging and testing services provider ASE Technology Holding Co. surging 8.87 percent to end at NT$221.00, and memory chip supplier Nanya Technology Co. gaining 2.31 percent to close at NT$133.00. But, smartphone IC designer MediaTek Inc. fell 1.14 percent to end at NT$1,300.00.

Also in the tech sector, iPhone assembler and AI server maker Hon Hai Precision Industry Co., second to TSMC in market value, rose 4.00 percent to close at NT$260.00, and Quanta Computer Inc., another AI server supplier, ended up 308.00.

"As AI has become a trend in the global industrial development, nontech stocks largely continued to languish today," Tsai said.

Among the fragile old economy stocks, Eclat Textile Co. lost 2.19 percent to close at NT$424.00, and rival Makalot Industrial Co. shed 2.13 percent to end at NT$276.00. In addition, Formosa Plastics Corp. fell 1.39 percent to close at NT$39.15 and Formosa Petrochemical Corp. ended down 0.66 percent at NT$45.25.

In addition, Fortune Electric Co. shed 2.27 percent to close at NT$604.00, while rival Rexon Industrial Corp. rose 1.27 percent to end at NT$27.90.

In the financial sector, which rose only 0.13 percent, Fubon Financial Holding Co. rose 0.99 percent to close at NT$91.80, while Cathay Financial Holding Co. ended unchanged at NT$64.80.

"The U.S. Federal Reserve will wrap up its policymaking meeting Thursday morning (Taipei time). Investors should listen to what the Fed will say about the economy and its hint for a rate cut cycle," Tsai said.