KGI Says Middle East Turmoil Does Not Alter Taiwan AI Stocks’ Long-Term Outlook

Escalating conflict in the Middle East and the closure of the Strait of Hormuz, a route for about 20% of global oil shipments, have fueled concerns about a renewed rise in oil prices and inflation. KGI Securities Investment Trust said Taiwan remains central to AI chip manufacturing and server supply chains, with neither demand nor its technological edge altered by the conflict. Taiwan stocks have generally delivered positive returns over periods of 30 days or more following major geopolitical events in the past 10 years.

Taiwan’s stock market opened down more than 1,000 points on March 4, 2026, falling below 34,000 as investors shifted into cash and safe-haven assets in response to Middle East risks. KGI recommended buying in stages on market weakness and holding for the long term. Cathay United Bank said the same day that inflationary pressure would increase if oil remained at $75–$80 a barrel, while the United States was seeking to prevent prices from breaking above $100.