Taiwan shares rise as tech gains on Jensen Huang’s AI optimism

Taiwan shares rose as the Taiex closed up 494.06 points, or 1.48%, at 33,836.57 after Nvidia CEO Jensen Huang’s upbeat AI remarks sparked buying, dealers said.

The gains recouped more than half of losses from the prior three sessions, when the index dropped 771.68 points after a crude oil spike tied to Middle East tensions.

TSMC closed up 1.63% at NT$1,870 (US$58.57) and contributed about 240 points to the Taiex rise, analysts said, as demand for AI chips lifted the electronics sector.

Memory suppliers drew buying amid supply shortages, with Macronix up 10% to NT$130.50 (US$4.09) and Winbond up 5.56% to NT$123.50 (US$3.87), analysts said.

Powerchip surged 10% to NT$71.70 (US$2.25) after it began technology cooperation with Micron, and Yageo jumped 10% to NT$286.00 (US$8.96).

Non-tech stocks were mixed while the financial sector lagged, rising 0.84% with Fubon and Cathay up about 1.1%, Huang said.

🔗 Source: Focus Taiwan

🧠 Food for thought

Implications, context, and why it matters.

A trillion-dollar forecast and a $1.8 billion acquisition plan fueled the rally

Comments about AI that triggered the buying were concrete, not vague.
Nvidia’s CEO said revenue could reach “at least $1 trillion” from 2025 through 2027 1.
Powerchip’s shares climbed on news beyond “technology cooperation.”
Micron signed a letter of intent to buy Powerchip Semiconductor Manufacturing Corp.’s P5 fabrication site in Tongluo, Taiwan, for $1.8 billion. The deal aims to expand DRAM memory chip output, with meaningful production expected in the second half of 2027 2.

The AI boom’s ripple effect is squeezing the consumer electronics market

Surging demand behind Taiwan’s market gains is tightening supplies of components worldwide.
Hyperscalers, giant cloud companies that run massive data centers, are building AI data centers that will likely lift DRAM contract prices about 25% in 1Q26 2.
The rush for memory capacity leaves less supply for other sectors.
PC units may drop 5% to 10% in 2026. Premium smartphone brands could add $100 to $150 per device since memory makes up about 20% of bill-of-material costs 2.