Taiwan Stocks Refocus on Fundamentals as AI, Chip Supply Chains Retain Long-Term Value

Artificial intelligence and semiconductor supply chains have become central to global technology development, helping Taiwan stocks reach repeated record highs in recent years and making leading companies’ earnings a key valuation benchmark. AllianceBernstein Investments Taiwan said continued capital-expenditure expansion by global technology giants underpins the semiconductor and AI supply chains’ long-term fundamentals. As Taiwan’s market turns volatile, the earnings and long-term allocation value of these key companies are important indicators of its momentum.

AllianceBernstein Investments Taiwan said on July 13, 2026, that profit-taking had pushed Taiwan stocks into volatile trading near record highs, with the weighted index falling 3.05% in one week. With second-quarter earnings reports due in July, investors are refocusing on corporate earnings and fundamentals. Assets in its actively managed ETF, 00404A, had reached about NT$3.340 billion by mid-July. Deputy General Manager Lin Bing-kui said the pullback reflected a valuation adjustment, while the long-term fundamentals of the semiconductor and AI supply chains remained solid.