Taiex Surges 794 Points to Record 41,933 as Trading Volume Tops NT$1.1 Trillion
Taiwans benchmark Taiex index extended its historic rally on Thursday, surging 794 points (1.93%) to close at a record 41,933.75, as AI-driven optimism and blockbuster first-quarter economic data continued to fuel an extraordinary bull run. Trading volume exploded to NT$1.1 trillion (approximately US$33.5 billion), marking the second consecutive session in which daily turnover exceeded the trillion-dollar threshold — a feat that would have been unthinkable just months ago but has become routine in Taiwans supercharged equity market. The total market capitalization of companies listed on the Taiwan Stock Exchange now exceeds NT$136 trillion, with the combined listed and over-the-counter market value surpassing NT$148 trillion.
The rally was led by Taiwans semiconductor titans. TSMC (台積電) closed at an all-time high of NT$2,310 per share, extending its dominance as the markets heaviest-weighted stock. United Microelectronics Corporation (聯電, UMC) surged 5.58% to NT$96.50, its highest level in 26 years — a milestone that underscores how deeply the AI boom has lifted the entire chip ecosystem. MediaTek (聯發科) also made headlines of a different kind: it became the largest market-cap stock in Taiwans history to enter "disposition" status, with regulators imposing a five-minute matching interval starting May 7 to cool speculative trading. Financial Supervisory Commission Chairman Peng Chin-lung (彭金隆) acknowledged that "many systems need to be reviewed" in light of the unprecedented market conditions.
Beyond the headline indices, the breadth of the rally was striking. Passive component and silicon wafer stocks surged in unison, with at least three stocks posting five consecutive days of gains. Memory chip maker Winbond (華邦電) surged to NT$114, while Lite-On Technology (光寶科) hit its daily limit-up at NT$203.50. Power supply giant Delta Electronics (台達電) climbed to NT$2,355. Perhaps most dramatically, Powerchip Semiconductor (力積電) gapped up to its daily limit of NT$63.90 after announcing it had entered Intels supply chain, with trading volume exceeding 300,000 lots. CTEE reported that institutional investors are coalescing around a "50K is not a dream" thesis, with multiple analysts issuing notes suggesting the Taiex has the fundamentals to reach 50,000 points.
The rally has drawn a flood of retail participation. According to the Financial Supervisory Commission, retail investors now account for more than 53% of total trading volume, with day trading (當沖) also exceeding 50% of turnover — though the FSC noted that the five-year trend for retail participation has actually declined slightly. Veteran analyst Wang Jung-hsu (王榮旭) cautioned that while the 50,000-point milestone is achievable if Middle East tensions ease and the US Federal Reserve begins cutting rates, retail investors should avoid excessive leverage. "Markets dont rise forever," Wang warned. Financial commentator Hsieh Chin-ho (謝金河) was more bullish, writing that "the Taiex has the strength to hit 50,000 points" and that AI-driven industrial transformation makes it "not impossible."
The rally has also produced notable second-order effects. Foreign capital inflows hit NT$800 billion in April alone, and some analysts are pointing to a "wealth effect" as stock market profits flow into high-end real estate in Taipei and other city centers. One report noted that investors cashing out stock gains are increasingly purchasing "hard assets" in prime downtown locations as a hedge. The extraordinary concentration of market value also drew attention: Taiwans top three listed companies — TSMC, MediaTek, and one other heavyweight — now account for 52% of total market capitalization, raising questions about diversification risk despite the ongoing euphoria. As one market strategist told Wealth Magazine, the "one variable" that could upend the rally is geopolitical — a reminder that Taiwans stock market trajectory remains inextricably linked to the cross-strait climate.