Taiwan Stock Market Shatters 40,000 Mark as TSMC and MediaTek Lead Historic Rally
Taiwan's stock market shattered multiple records on Monday as the TAIEX index surged 1,778.51 points — the largest single-day point gain in the exchange's history — to close at 40,705.14, breaching the 40,000-point barrier for the first time. The broader market gain of 4.57% was powered by an extraordinary rally in semiconductor and electronics stocks, with trading volume reaching NT$1.68 trillion as institutional and retail investors rushed to participate in what analysts are calling a "once-in-a-generation" bull run.
Taiwan Semiconductor Manufacturing Co. (TSMC) led the charge with a monumental NT$140 gain to close at NT$2,275 per share, briefly touching NT$2,285 intraday — setting simultaneous records for the highest single-day dollar gain and highest price in the company's history. Its U.S.-listed ADR added 0.99% despite a broader pullback on Wall Street, underscoring the global conviction behind the AI semiconductor thesis. MediaTek delivered an equally stunning performance, surging to its daily limit of NT$2,870 after its first-quarter earnings beat consensus estimates and the company issued an optimistic outlook for its AI ASIC business, prompting multiple foreign brokerages to raise price targets to as high as NT$5,000.
The rally drew strength from multiple tailwinds. Apple's better-than-expected quarterly earnings report lifted global tech sentiment, while easing concerns over Middle East tensions following ceasefire talks between the United States and Iran reduced geopolitical risk premiums. Taiwan's own first-quarter GDP growth came in at its strongest in 39 years, driven by robust export demand and heavy capital investment in AI infrastructure. Foreign institutional investors poured NT$248.1 billion into Taiwanese equities in April alone, with investment trusts adding NT$41.5 billion and proprietary traders contributing NT$61 billion — a wall of money that has overwhelmed any profit-taking selling pressure.
The broader rally lifted an entire ecosystem of semiconductor-focused financial products. The TSMC-heavy Fubon Technology ETF (0052) gained over 5% on heavy volume of 44,000 lots, while broader market ETFs saw record inflows. Hon Hai (Foxconn) rose NT$8 to NT$227.5, Delta Electronics gained NT$55 to close at NT$2,220, and the electronic sector index jumped 5.58% as a whole. The over-the-counter index also rose 3.55%, confirming that the rally's breadth extended well beyond the largest-cap names. Only the financial sector bucked the trend, slipping 0.17% as capital rotated aggressively into technology.
Looking ahead, several brokerages have raised their year-end TAIEX targets to 50,000 points, citing robust AI demand and Taiwan's irreplaceable position in the global semiconductor supply chain. Analysts note that at approximately 17 times forward earnings, the market still trades below the 21 times multiple seen at previous bull market peaks, suggesting further upside. However, veteran market watchers are cautioning retail investors against excessive leverage, noting that with the earnings season underway, attention will now shift to company-specific April revenue figures and first-quarter results to validate the sustainability of a rally that has added over 7,200 points in a single month.