Taiwan’s equity market has experienced a remarkable surge in April, driven by sustained enthusiasm for artificial intelligence technologies. Investors have flocked to semiconductor and technology stocks, buoyed by robust export growth and a rapidly expanding economy.
The TWSE Index posted a staggering 22.7% monthly gain, reaching 38,926.63 points, and has now risen 34.4% since January, according to Bank of America. Technology shares dominated trading, accounting for 79% of turnover in the second quarter, while average daily trading volume soared 187% year-over-year to approximately $38.9 billion.
The total market capitalization of Taiwanese stocks increased by 18% in April, hitting $4 trillion, with technology firms representing over 80% of the market. This rally reflects Taiwan’s central role in the global AI supply chain, as demand for AI infrastructure, semiconductors, and cloud computing hardware continues to escalate.
First-quarter GDP expanded at an annualized rate of 13.7%, the fastest since 1987, largely fueled by AI-related exports. In March, exports jumped 61.8% year-over-year to a record $80 billion, driven by shipments of advanced computing and semiconductor components.
Investor activity has intensified in leveraged trading and ETFs, with margin loan balances climbing 23% month-over-month to a record NT$641 billion. Taiwan-listed ETFs attracted NT$1.5 trillion in new assets this year, and active long-only funds maintained near-record overweight positions on Taiwanese equities, favoring semiconductor companies.
NVIDIA’s continued dominance in AI processors has bolstered sentiment toward Taiwan’s semiconductor ecosystem, particularly suppliers of high-end chip packaging and production. However, signs of overheating are emerging, as consumer inflation accelerated to 1.74% in April from 1.2% in March, partly due to higher energy costs. The Taiwan dollar also appreciated against the U.S. dollar as foreign capital flowed into local equities.
The AI spending wave is reshaping global markets beyond Taiwan, with major tech companies like Microsoft, Amazon, Meta, and Google announcing billions in investments for AI data centers and computing infrastructure. Analysts predict that demand for advanced semiconductors and AI hardware will remain robust through 2026 as companies expand cloud and generative AI services worldwide.