Taiwan Stocks Hit Record High as AI Rally Powers Tech Sector

The Taiex reached its latest record as some of Taiwan’s largest technology companies advanced. TSMC gained 0.4%, while MediaTek jumped 7.88% and Delta Electronics rose 2.67%. The three companies rank among the largest stocks on the benchmark by market capitalization.

The gains followed strength in U.S. technology stocks, where enthusiasm around artificial intelligence remained a key market driver. Investor sentiment received additional support from early indications of progress involving Meta’s AI agent. That momentum carried into Asian technology shares, providing another boost to Taiwan’s semiconductor-heavy market.

Tuesday’s milestone came roughly three months after the Taiex set its previous record in June. Taiwanese equities have performed strongly this year as spending on AI infrastructure continues to fuel demand for advanced chips, servers and related hardware. Taiwan’s concentration of semiconductor manufacturers makes its equity market particularly sensitive to changes in the global AI investment cycle.

Technology companies account for about 88% of Taiwan’s benchmark equity index, according to Standard Chartered, with semiconductors representing much of that exposure. The bank also estimates that Taiwan produces more than 90% of the world’s most advanced chips measuring 7 nanometers or smaller. That position has made the market one of the clearest beneficiaries of growing global investment in AI computing.

Taiwan’s rising importance has also reshaped its position among global equity markets. HSBC data showed that Taiwan overtook Canada in May to become the world’s sixth-largest stock market by market capitalization. The milestone reflects both the appreciation of Taiwanese technology shares and the growing value investors place on companies connected to the AI supply chain.

Attention is now turning to Taiwan’s August export-order figures for another indication of the strength of external technology demand. UOB said markets expect export orders to grow 63% from a year earlier, compared with 61.9% growth in July. A resilient reading would provide further evidence that AI-related demand continues to support Taiwan’s technology sector and broader equity market.