Foreign Investors Return as Taiwan Stocks Overtake Kospi

Investors are reassessing Asian equity exposure as doubts grow over whether massive spending on artificial intelligence will generate returns quickly enough to justify elevated technology valuations. Taiwan is regaining attention because its market offers a broad AI supply-chain ecosystem spanning semiconductor foundries, server assembly and critical components, giving global funds exposure to both infrastructure demand and established manufacturing earnings.

Foreign investors recorded net purchases of Taiwan shares for a second consecutive trading day, helping lift the benchmark’s year-to-date gain to 54%. That pushed Taiwan’s annual advance above South Korea’s Kospi for the first time this year. The shift suggests overseas funds are favoring Taiwan’s supply-chain depth and earnings visibility as scrutiny of AI capital expenditure and its eventual payoff intensifies.