### Record Highs in Taiwan’s Stock Market Due to AI Advancements: Opportunities for Further Growth

Taiwan’s stock market achieved record highs on Friday, driven by increasing demand for semiconductor and artificial intelligence technologies, signaling potential for further growth in the sector.

The Taiwan Weighted Index surged to an intraday high of 20,296 before experiencing a slight pullback. Analysts predict that the index could reach 24,000 by the end of the year, buoyed by the robust demand for AI services globally.

Paul You, the chairman of First Securities Investment Corporation, highlighted the strong momentum in the AI sector over the past few weeks, emphasizing the positive outlook despite challenges faced by other industries amidst global uncertainties.

Alicia Garcia-Herrero, Chief Economist for Asia Pacific at Natixis, expressed optimism about the market’s performance, attributing the rally to increased fixed asset investments post-elections and the ongoing AI boom.

TSMC, a key player in the semiconductor industry and a major supplier to Nvidia, has seen a remarkable 30% surge in its stock price this year. Similarly, companies like Quanta Computer and Wistron Corporation have also experienced significant gains, reflecting the overall bullish sentiment in Taiwan’s tech sector.

Alicia Garcia-Herrero highlighted the need for sector rotation to further propel the market towards new highs, suggesting potential opportunities in sectors like precision machinery, automation technology, and consumer goods.

Despite the impressive headline index performance, Goldman Sachs pointed out that only a fraction of Taiwan’s stocks have consistently delivered strong returns, indicating a need for broader market participation to sustain the rally.