Taiwan shares end higher as tech sector gains on Jensen Huang AI optimism

Taipei, March 17 (CNA) Shares in Taiwan closed higher Tuesday led by the electronics sector, after Nvidia Corp. CEO Jensen Huang's upbeat AI remarks overnight sparked buying that helped the local index bounce back from a slump in recent sessions, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 494.06 points, or 1.48 percent, at 33,836.57 after moving between 33,380.84 and 34,008.70. Turnover totaled NT$818.89 billion (US$25.65 billion).

Tuesday's gains recouped more than half of the losses over the previous three sessions, when the index dropped 771.68 points due to a spike in international crude oil prices amid Middle East tensions.

"Investor sentiment toward AI stayed positive," Concord Securities analyst Kerry Huang said. "So when Jensen Huang spoke, buying followed." The Nvidia CEO said he expected AI demand to top US$1 trillion by 2027 at the GTC 2026.

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which rolls out chips for Nvidia, attracted AI frenzy-driven buying after its American depositary receipts rose 0.57 percent and Nvidia shares gained 1.65 percent overnight, Kerry Huang said.

TSMC, which accounts for over 40 percent of total market value, closed up 1.63 percent at NT$1,870.00. The stock contributed about 240 points to the Taiex's rise and drove the electronics index 1.75 percent higher.

Interest in memory chip suppliers remained amid a continued supply shortage with shares in Macronix International Co. soaring 10 percent, the maximum daily increase, to end at NT$130.50, and Winbond Electronics Corp. rising 5.56 percent to close at NT$123.50, Huang added.

"With ample liquidity, rotational buying appeared active and further fueled the electronics sector throughout the session," Huang said.

Powerchip Semiconductor Manufacturing Corp. surged 10 percent to close at NT$71.70 after it began technology cooperation with American memory chip provider Micron Technologies Inc. In addition, Yageo Corp., the world's third-largest multi-layer ceramic capacitor (MLCC) maker, also jumped 10 percent to end at NT$286.00.

While the electronics sector dominated the main board, non-tech stocks largely moved in mixed, Huang said.

Formosa Plastics Corp. lost 0.85 percent to close at NT$45.45, and Nan Ya Plastics Corp. shed 4.15 percent to end at NT$85.50, while Shihlin Electric & Engineering Corp. rose 2.50 percent to close at NT$205.00 and Fortune Electric Co. ended up 1.32 percent at NT$921.00.

The financial sector lagged the Taiex, rising just 0.84 percent with Fubon Financial Holding Co. up 1.13 percent to close at NT$89.80 and Cathay Financial Holding Co. ending up 1.10 percent at NT$73.20.

"Today's gains also reflected the pullback of crude oil prices but with no immediate sign of an end to the war in the Middle East, crude oil price fluctuations remain a factor to the market," Huang said. "Stay cautious despite the index rebound."

According to the Taiwan Stock Exchange, foreign institutional investors bought NT$457 million in shares on the main board Tuesday.