TAIPEI — Taiwan’s stock market surged past the 23,000-point level during trading on July 16, fueled by investor optimism ahead of TSMC’s earnings report. High-value stocks rallied across various sectors, led by AI, automotive semiconductor, and materials companies. However, not all top-tier stocks joined the rally, with some facing downward pressure from recent highs.
Taiwan Optoelectronics Enters NT$1,000 Club
Taiwan Optoelectronics (2383), one of the key players in copper-clad laminate (CCL) materials, soared during intraday trading to NT$1,005, entering the prestigious “thousand-dollar stock” category. The Taiwan Stock Exchange even briefly displayed a symbolic “NT$19,000” reference, highlighting the strong buying momentum.
The company reported second-quarter revenues up 3.8% quarter-on-quarter and 45.6% year-on-year, with a sales success rate of over 101%, driven by increasing demand for high-end panels used in AI and cloud servers. Industry analysts noted that with Trainium2 server orders rising by 15% to 20%, and growing adoption of advanced multi-layer materials in AI server chips, the firm is well-positioned for continued growth. Taiwan Optoelectronics remains confident in its long-term prospects in AI, cloud, edge computing, and low-orbit satellite markets.
Alchip-KY Rises on AI and Automotive Chip Demand
Alchip-KY (3661) made a strong push, surging to NT$3,665, its highest since February. International analysts believe the company stands to benefit significantly from China’s accelerating electric vehicle (EV) transition, especially as ADAS (Advanced Driver Assistance Systems) become more common in affordable car models.
U.S. investment houses maintained an “outperform” rating for Alchip with a target price of NT$4,088, citing its edge in automotive AI chip design and strong customer relationships. Analysts also point to dual growth drivers in high-performance computing (HPC) and automotive AI as reasons for sustained investor confidence.
Stock King HXS Faces Profit-Taking Pressure
In contrast to the broader bullish trend, HXS (5274), the reigning stock price leader, faced notable selling pressure. After peaking at NT$5,205 on July 10—up 128% from its April low—the stock dropped below the NT$5,000 mark during trading and is now attempting to hold support at NT$4,800. This decline reflects profit-taking behavior as the stock enters a consolidation phase.
Despite the pullback, optimism remains high. U.S. analysts have recently raised HXS’s target price to NT$6,100, and in a best-case scenario, even see it hitting NT$7,000. Japanese investors have also identified HXS as a major beneficiary of AI growth trends.
AI Server and Semiconductor Plays in Focus
Tech hardware and server component makers continued to attract attention. ASUSTek saw its shares fall to NT$4,810, losing monthly support. This comes even as Japanese reports noted Nvidia’s NVL72 AI server has entered mass production in Q2, with new GB300 architecture expected in Q3. Strong demand from cloud service providers like Amazon is expected to fuel continued AI market growth.
Meanwhile, companies such as Delta Electronics, Wiwynn, Foxconn, Quanta, Accton, and Golden Image Electronics were positively mentioned by analysts for their positioning in the AI supply chain.
U.S. foreign investors highlighted ASPM as a notable Nvidia concept stock, specializing in AI server BMC (Baseboard Management Controllers) and benefiting from rising demand for ASICs and cloud semiconductor components.
Outlook
With the market buoyed by enthusiasm around AI, semiconductor advancements, and earnings expectations, Taiwan’s stock exchange is showing strong momentum. However, the volatility seen in some high-value stocks like HXS signals that investors may begin to rotate or take profits in selected sectors. The upcoming TSMC earnings announcement is likely to set the tone for the next phase of market movement.
