UBS Sees Taiwan Extending Gains From Global AI Chip Boom

Taiwan sits at the center of the global artificial-intelligence infrastructure buildout through its strength in advanced chip design, contract manufacturing and packaging. UBS Global Wealth Management expects sustained demand for cloud computing, data centers, computing infrastructure and leading-edge semiconductors to keep supporting the island’s technology supply chain. The investment case is increasingly important for Taiwan’s equity market, where semiconductor earnings remain closely tied to spending by global technology groups.

UBS’s Chief Investment Office said on July 24 that Taiwan’s AI chip demand remained robust. TSMC’s second-quarter 2026 revenue rose 36% from a year earlier to NT$1.27 trillion, while net profit jumped 77.4% to NT$706.56 billion. UBS also estimated S&P 500 earnings growth could accelerate to 28% in the second quarter from about 20% in the first. Investors will now scrutinize whether rising AI capital expenditure produces durable revenue and profits, while geopolitical tensions, energy disruptions and sticky inflation could pressure valuations.