Taiwan Stocks Seen Rebounding on AI Servers, Silicon Photonics

Taiwan’s stock market is undergoing a volatile consolidation in the third quarter as investors look ahead to potential fourth-quarter catalysts. Analyst Li Shu-fang sees artificial-intelligence infrastructure remaining a central growth theme, with Nvidia’s next-generation Vera Rubin platform expected to drive upgrades across the AI server supply chain. Silicon photonics and optical communications may also benefit from rising demand for faster data transmission.

Li said the third-quarter shakeout could establish a base for a fourth-quarter rebound led by AI server suppliers and stocks linked to Vera Rubin. She highlighted upstream materials used in silicon photonics and optical communications as offering particularly strong long-term growth potential. Investors could use market pullbacks to build positions gradually, she said, while remaining alert to earnings reports and the risk that corporate fundamentals fall short of expectations.