Taiwan’s State Banks See AI Supply Chain Lifting Stocks

Taiwan’s state-owned banks expect the local equity market to retain upside potential in the second half of 2026, supported by the island’s central role in the global AI supply chain. Taiwan’s concentration of advanced chips, servers and other critical hardware gives listed technology companies direct exposure to sustained AI infrastructure spending, keeping heavyweight suppliers at the center of the market outlook.

The banks’ latest assessment said AI demand should remain a key driver for Taiwan stocks, while bonds face a less certain backdrop as inflation, geopolitical tensions and monetary policy shape trading. Yields are expected to stay elevated and fluctuate through the second half of 2026. The report did not disclose a specific equity-index target, yield range or investment amount, leaving incoming economic data and policy signals as major variables.