By Reuters
Publication Date: 2025-12-12 05:31:00
(Corrects reporter byline)
By Faith Hung and Rae Wee
TAIPEI/SINGAPORE, Dec 12 (Reuters) – Taiwan’s tech-heavy stocks show few signs of slowing a rally even as AI bubble worries cast a shadow over global markets, underscoring home-grown confidence in the structural advantages in AI that foreign investors may have overlooked.
Taiwan’s benchmark index is poised to breach a record 30,000 points in 2026, investors say, extending a three-year surge that has seen the stock market nearly double as the island rides a wave of demand for chips that power artificial intelligence.
While foreign money worries about stretched AI valuations, Taiwanese investors have enthusiastically ploughed into the market.
Analysts say domestic investors are betting on Taiwan’s unique position as the lynchpin of an AI supply chain, where even increasing competition in the sector would only benefit Taiwanese firms, including TSMC, the world’s largest contract chipmaker.
One major focus of anxiety around AI comes from uncertainty about Nvidia‘s ability to sustain its market dominance, with Google’s tensor processing units (TPUs) emerging as a potentially more cost-effective alternative to Nvidia’s graphics processing units (GPUs).
But it’s a win-win scenario for Taiwan because the island is essential to supply chains of both the GPU and TPU, the building blocks of AI computing power.
“Taiwan is a major beneficiary of the AI market,” said Piter Yang, a fund manager of…
