Taiwan Stock Market Surges Past 41,000 Points in Record Rally
Taiwan's benchmark TAIEX index continued its historic ascent on Wednesday, surging more than 700 points to close above 41,500 — shattering the 41,000-point psychological barrier for the first time in the market's history. The rally, which has seen the index gain thousands of points in a matter of weeks, was fueled by a powerful combination of record-breaking performances on Wall Street overnight and growing confidence in Taiwan's central role in the global artificial intelligence supply chain.
The rally was broad-based but led by the usual suspects. MediaTek (聯發科), Taiwan's leading chip designer, locked in its daily limit-up for a second consecutive session, closing at NT$3,470 — an all-time high that reflects soaring demand for its AI application-specific integrated circuits (ASICs). TSMC (台積電), the world's most valuable semiconductor company, rose NT$30 in early trading, contributing heavily to the index's advance. Server management chipmaker Aspeed Technology (信驊) also reached a record, hitting NT$19,000 per share. Trading volume across the main board reached levels not seen in years, reflecting both institutional repositioning and a surge of retail investor participation.
Analysts attributed the rally to multiple tailwinds converging simultaneously. The ceasefire between the United States and Iran eased fears of a broader Middle Eastern conflict that could disrupt global energy supplies, sending oil prices lower and risk appetite higher. The S&P 500, Nasdaq, and Philadelphia Semiconductor Index all closed at new records in the prior U.S. session, with strong earnings from major tech companies reinforcing the AI investment thesis. Taiwan's first-quarter GDP posted its strongest growth in 39 years, driven by export demand and capital investment in AI infrastructure.
The speed and scale of the rally have prompted several major brokerages to significantly raise their year-end targets, with some now projecting the TAIEX could reach 50,000 points. Veteran analyst Wang Jung-hsu (王榮旭) told investors the milestone is "not a dream" if current conditions persist. However, he and other market observers have cautioned retail investors against excessive leverage, warning that "markets don't rise forever" and noting that the velocity of the recent gains suggests some froth may be building. For now, however, the momentum appears unstoppable — Taiwan's stock market is the best-performing major index in Asia for 2026, and the AI supercycle shows no signs of cooling.