AI Stock Rally Lifts Taiwan Shares in May as Financial Sectors Diverge

Taiwan stocks surged about 5,806 points in May 2026, their biggest monthly point gain on record, fueled by enthusiasm for AI and heavyweight technology shares. The bull market drew retail investors and prompted banks, securities firms and insurers to adjust their portfolios. Because the three sectors face different risk controls, capital requirements and pressures from net asset value fluctuations, their investment moves as Taiwan stocks hit record highs became an important gauge of institutional sentiment.

Financial Supervisory Commission data showed divergent trading patterns among the three sectors in May 2026. Banks and securities firms remained net buyers of Taiwan stocks, purchasing NT$35.6 billion and NT$22.41 billion, respectively. Insurers, by contrast, cut their holdings by NT$140.2 billion to lock in profits at elevated levels and limit net asset value volatility, with life insurers alone recording net sales of NT$133.4 billion. The financial industry overall reduced its exposure by a net NT$82.2 billion during the month, signaling a more cautious approach to asset allocation at market highs.