Global funds reportedly snapped up Taiwanese stocks in their biggest one-day buying spree in two decades, signaling confidence that chipmakers will remain AI-boom beneficiaries, even as broader markets face growing fears of disruption.
Overseas investors bought a net $2.77 billion of Taiwan equities on Tuesday, the most since December 2005, according to data compiled by Bloomberg. The investment also marked a sixth straight day of buying by foreign funds.
The growing dominance of Taiwan Semiconductor Manufacturing Co. has underpinned the broader market, with TSMC (TSM) now accounting for about 45% of the Taiex index, roughly triple its weighting a decade ago. The stock has surged about 30% this year, repeatedly notching fresh record highs. It produces advanced semiconductors for major tech companies, including Apple (AAPL), AMD (AMD), and Nvidia (NVDA).
The surge in equity inflows has also lent support to the Taiwanese dollar, though gains have been tempered by steady U.S. dollar buying from local life insurers. The currency’s relative stability may also reduce the need for foreign investors to hedge their exposure, the report said.
At the current pace, Taiwan is on track for roughly $7 billion in foreign inflows this month, a contrast to the roughly similar amount that has been pulled from memory chip-focused South Korea over the same period.