(Boursier.com) — India in 2023, Taiwan in 2024? Taiwanese stocks hit new all-time highs on Friday as growing demand for artificial intelligence and semiconductor technology bolsters investor optimism about the country’s tech companies. The Taiwan Stock Exchange’s flagship index, the TAIEX, reached an intraday high of 20,296 pts before paring its gains, according to Factset data. The index could reach 24,000 pts before the end of the year, according to Paul You, president of First Securities Investment Corporation, quoted by ‘CNBC’.
Global demand for AI has been robust over the past two to three months and remains “very promising,” according to the specialist. This paves the way for an economic boom for the island, which has the “strongest supply chain for manufacturing AI services,” according to P.You. Taiwan benefits first and foremost from the performance of its national champion, the chip giant TSMC (+35% since January), which is the main chip manufacturer under contract for Nvidia.
Despite the strong performance of the overall index, Taiwan’s “market breadth is narrow” as less than half of Taiwan’s stocks have generated positive returns year-to-date, according to Goldman Sachs. Thus, like several major Western indices, Taiwan will undoubtedly need a certain rotation towards slightly less performing sectors to continue to look upwards.
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