Taiex falls below 40,000 points as AI concerns run deeper

Taipei, July 29 (CNA) Shares in Taiwan plunged again Wednesday morning, with Taiwan's benchmark index falling below the 40,000-point mark as large tech stocks came under heavy pressure amid growing concerns over large AI investments, dealers said.

As of 11:53 a.m., the Taiex had fallen 1,830.55 points, or 4.40 percent, to 39,772.81, while the bellwether electronics index had fallen 5.08 percent. The last time the Taiex closed below 40,000 points was April 30.

Dealers said concerns were running deeper that massive AI investments will not generate satisfactory revenue, prompting investors to trim their holdings of electronic stocks after the Philadelphia Semiconductor Index fell 4.49 percent overnight.

Wednesday's plunge followed a more than 2,000-point plunge in the Taiex on Tuesday. The Taiex closed at 47,018.99 on July 1.

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of total market value, had fallen 3.29 percent to NT$2,205.00 (US$67.85) as of 11:53 a.m. The stock's losses contributed about 520 points to the Taiex's fall.

Memory chip suppliers continued to suffer, with Nanya Technology Corp. tumbling 10 percent, the maximum daily decline, to NT$353.50.