Taiwan’s stock market continued its strong AI-fueled rally in April, with investors flocking to semiconductor and technology stocks as demand for artificial intelligence continues to lift exports and economic growth.
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- Taiwan’s TWSE rose 22.7% in April as demand for AI-related semiconductors pushed first-quarter GDP growth to 13.7%, the fastest since 1987.
- Technology stocks accounted for 79% of the market’s trading volume, while average daily trading volume rose 187% year-on-year to NT$1.23 trillion.
- Margin loan balances reached a record high of NT$641 billion, as investors increased exposure to Taiwan’s artificial intelligence and semiconductor sectors.
according to Bank of AmericaThe TWSE rose 22.7% month-on-month to 38,926.63 and is now up 34.4% year-to-date.
Technology stocks remained the main driver of trading activity across the market. The sector accounted for 79% of total trading volume during the second quarter so far, while average daily trading volume increased by 187% year-on-year to about $38.9 billion.
The total market capitalization of Taiwan’s stock market rose 18% in April to $4 trillion, with technology companies accounting for more than four-fifths of the market.
The rise comes as Taiwan continues to benefit from global demand for artificial intelligence infrastructure, chips and cloud computing devices. GDP in the first quarter expanded 13.7% year-on-year, the fastest pace on record since 1987, supported largely by AI-related exports. March exports jumped 61.8% from a year earlier and reached a monthly record high of $80 billion as shipments linked to advanced computing and semiconductor supply chains accelerated.
Investor activity has also intensified through leveraged trading funds and exchange-traded funds. Margin loan balances rose 23% month-on-month to a record high of NT$641 billion, while Taiwan-listed ETFs attracted NT$1.5 trillion in new assets this year. Long-only active funds maintained near-record overweight positions in Taiwan stocks in March, with semiconductor companies remaining the most favored sector among institutional investors.
The recent gains highlight how central Taiwan is to the global AI supply chain. Companies associated with manufacturing advanced chips, AI servers and cloud infrastructure have seen increasing demand as companies around the world race to expand AI computing capacity.
Nvidia continued Dominance in artificial intelligence processors It also helped boost sentiment toward Taiwan’s semiconductor ecosystem, especially suppliers associated with high-end chip packaging and production.
At the same time, signs of overheating began to attract attention. Consumer price inflation accelerated to 1.74% in April from 1.2% in March, partly due to higher energy costs. The Taiwanese dollar also rose against the US dollar during the month as foreign capital continued to flow into local stocks.
The wave of AI spending continues to reshape global markets beyond Taiwan. Microsoft, Amazon, deadand Google have all announced plans to do so Investing billions of dollars in artificial intelligence data centers And computing infrastructure this year.
Analysts expect demand for advanced semiconductors and AI devices to remain strong through 2026 as companies expand cloud and AI-generated services around the world.
