00:00Taiwan's stock market is booming.
00:02The Thai has topped 4 trillion US dollars in April,
00:05surpassing the UK and Canada to become the world's sixth largest stock market by capitalization.
00:10But what's behind the growth?
00:12The quick answer is AI.
00:14Most of the critical hardware the Ryzen industry runs on is made in Taiwan.
00:19NVIDIA won't be possible without Taiwan.
00:22And there's magic in this island.
00:25The companies here have extraordinary technology.
00:30This is especially true for TSMC, the world's largest chipmaker.
00:35The company accounts for over 40% of the Thai eggs, influencing broader market movement.
00:40In the company's Q1 results, it reported a growth margin of over 60%, driven by robust demand,
00:47especially from growing AI investment by cloud service providers like Google, Amazon and Microsoft.
01:07This spending boom is being felt across the sector's supply chain,
01:11with other companies providing hardware like chips and service seeing their market value rise.
01:30This shift can be seen in the broader market.
01:34In the Thai eggs' top 10 companies by market cap, nine are now AI-related tech firms,
01:39such as Delta Electronics, MediaTek and Foxconn, each with a market value exceeding 100 billion US dollars.
01:47It's a major shift from a decade ago, when financial stocks dominated.
02:04The Thai eggs is largely driven by foreign institutional investors who are heavily concentrated in semiconductor stocks
02:11and hold around 70% of TSMC's shares.
02:14Both of these factors greatly impact Taiwan's stock market performance.
02:18Domestic retail investors are also getting in on the hype,
02:22pushing trading value to a record high of around US$570 billion US dollars in March.
02:27Popular local ETFs that skew towards TSMC and other tech stocks have also contributed to the Thai eggs' recent highs.
02:35The Thai eggs' boom was just the start.
02:50In 2024, the Thai eggs reached 20,000 points.
02:53It took nearly two years to gain its next 10,000, hitting 30,000 in January 2026.
03:00But just three months later, in April, it crossed 40,000.
03:04Record high demand for Taiwan's tech products plus strong appetite for leading tech stocks drove the latest gains.
03:11However, experts note the underlying reality of Taiwan's stock market amid its boom.
03:17Because it's an AI-驱动, it's very serious.
03:27While there's huge demand for Taiwan's tech products, there may not be enough capacity to meet it.
03:32Manufacturing is extremely energy-intensive, and Taiwan's power supply relies heavily on imported fuel.
03:39Market watchers say this will become a bigger problem down the road.
03:42Despite these concerns, the Thai egg's stellar performance reflects solely investor confidence in the country's technological prowess.
04:11Taiwan is easing investment limits, raising the single stock cap for local equity funds and actively manage ETFs by 15
04:18percentage points.
04:19This will let them invest more heavily in major stocks like TSMC, further boosting investor interest in these companies, and
04:27possibly driving up the Thai eggs even more.
04:29Client won an IT in Taipei for Taiwan Plus.
Comments