Taiwan shares end up over 500 points amid continued AI enthusiasm

Taipei, March 18 (CNA) Shares in Taiwan moved higher by more than 500 points Wednesday, with buying triggered by lingering enthusiasm toward global AI development, which pushed up tech stocks, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 512.01 points, or 1.51 percent, at 34,348.58 after moving between 33,929.28 and 34,423.66.

Turnover totaled NT$896.96 billion (US$27.94 billion), compared with an average of about NT$807.0 billion in the previous five sessions.

"Looking at the expanded turnover, I think many investors have become more willing to chase prices to pick up large-cap AI-related stocks during Nvidia Corp.'s ongoing annual GTC 2026," MasterLink Securities analyst Tom Tang said.

"Many investors have turned upbeat, in particular after Nvidia CEO Jensen Huang (黃仁勳) forecast demand for AI infrastructure could reach at least US$1 trillion by 2027," Tang said.

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which produces chips for Nvidia, continued to attract strong buying, up 1.87 percent to close at NT$1,905.00 after its American depositary receipts rose 1.98 percent overnight. TSMC, which accounts for over 40 percent of total market value, contributed about 280 points to the Taiex's rise.

"TSMC ended above the 20-day moving average of NT$1,900.00 and has become technically healthier," Tang said. "I expect the stock will continue to drive the Taiex higher."

The AI frenzy also spread to other tech stocks with TSMC's IC design subsidiary Global Unichip Corp. soaring to the daily maximum of 10 percent, ending at NT$2,515.00, and power management solution provider Delta Electronics Inc. rising 1.74 percent to close at NT$1,465.00, Tang said.

However, AI server maker and iPhone assembler Hon Hai Precision Industry Co. ended down 0.94 percent at NT$210.00, he said.

Memory chip suppliers continued to benefit from a global supply shortage as Macronix International Co. surged 10 percent to close at NT$143.50 and Winbond Electronics Corp. rose 3.64 percent to end at NT$128.00.

Buying also rotated to select non-tech stocks in line with the broader market, dealers said.

Garment maker Eclat Textile Co. rose 5.66 percent to close at NT$392.00 and rival Makalot Industrial Co. gained 3.48 percent to end at NT$297.00.

The financial sector was left behind by the broader market again, rising only 0.05 percent.

"With the market awash in liquidity, further gains in the Taiex are possible, but the nearest technical resistance will be ahead of 35,000 points," Tang said.

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$9.33 billion of shares on the main board Wednesday.