Taiwan Stocks Near Correction as AI Selloff Deepens
· Business · Bloomberg, Investing.com
Taiwan's Taiex benchmark index has fallen more than 10 percent from its recent peak, placing it on the cusp of a technical correction. The decline is driven by a global selloff in artificial-intelligence-related stocks that has wiped out gains across semiconductor and hardware names. Taiwan Semiconductor Manufacturing Co., the index heavyweight, has led the drop as investors reassess near-term AI demand and valuations. Foreign investors have turned net sellers of Taiwanese equities for several consecutive sessions, accelerating the slide. Analysts say the correction could deepen if US tech earnings disappoint or if macroeconomic data points to slower growth. The market's next direction hinges on upcoming earnings from major US chip designers and foundry customers.
Why it matters
The selloff hits the world's largest contract chipmaker and a linchpin of the global AI supply chain, threatening portfolio returns for international funds and reducing capital for Taiwan's semiconductor expansion plans.
Read the original report — Bloomberg
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