TAIPEI (Taiwan News) — Taiwan’s stock market remained largely unchanged on Thursday as investors awaited TSMC's earnings call, a key bellwether for the market.
The Taiwan Capitalization Weighted Stock Index, or TAIEX, closed up 70.38 points at 23,113.28. Turnover totaled NT$329 billion (US$11 billion), according to CNA and CTEE.
TSMC’s shares ended the day unchanged at NT$1,130. Foxconn rose 0.92% to close at NT$164, while MediaTek declined 1.42% to NT$1,390.
Following market close, TSMC reported Q2 revenue of NT$933.79 billion, surpassing market expectations, which had ranged between NT$836 billion and NT$860 billion. Ahead of the conference, major foreign institutional investors have raised TSMC’s target price, led by Morgan Stanley at NT$1,288, with Nomura and HSBC following at NT$1,280.
Battery backup unit concept stocks led gains in the session. Stl Technology, which recently distributed a cash dividend of NT$2 per share, saw its stock rebound quickly after the ex-dividend date to close at the daily limit of NT$106.
When a company pays dividends, it distributes part of its profits to shareholders. This usually causes a dip in the stock price on the ex-dividend date.
Dynapack International Technology and Celxpert Energy also recorded gains. BBUs, which provide power backup to servers during outages, have seen rising demand due to increasing power needs driven by artificial intelligence workloads.
The silicon wafer sector also experienced strong momentum amid growing demand from AI and high-performance computing applications. This rise has fueled robust growth in advanced wafer foundry processes and the memory market.
With equipment and design manufacturers expected to initiate a new stocking cycle in July and August, semiconductor material companies including GlobalWafers, Formosa Sumco Technology, and Wafer Works hit their daily price limits.
Silicon wafers, circular thin plates made from high-purity silicon, serve as the foundation for semiconductor components.
Meanwhile, Nvidia CEO Jensen Huang (黃仁勳) on Wednesday generated increased investor interest in robotics-related precision machinery stocks. Huang said that the next wave of AI development would be propelled by robotic systems.
Chieftek Precision, Hiwin Technologies, Tbi Motion, KhGears, and Hiwin Mikrosystem saw gains ranging from 2.01% to 5.16%, with Hiwin Technologies leading the advances.
Capital Investment Vice President Tseng Yen-yu (曾炎裕) said that TSMC’s stock price has already priced in much of the positive sentiment ahead of the conference. Based on past experience, Tseng noted, unless unexpected good news emerges, the event could trigger some profit-taking.
Despite potential short-term volatility, Tseng emphasized TSMC’s strong mid- to long-term growth prospects, underscoring its critical role in global advanced chip manufacturing.
While Nvidia is often regarded as a leading AI stock, it relies heavily on TSMC’s manufacturing capabilities. Conversely, TSMC serves a broader clientele, making its overall value potentially underestimated, Tseng added.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
