Cathay Securities Investment Trust Sees Long-Term Value in Taiwan Semiconductors on Strong AI Demand, Computex Boost

Generative AI is driving demand for data-center computing capacity, while technology giants including Nvidia, Google and Meta are increasing investment. Taiwan, with its leading positions in advanced wafer manufacturing, packaging, AI servers and component supply chains, is a major beneficiary of that capital spending. Cathay Securities Investment Trust expects June's Computex, which brings together global chip-industry leaders, to strengthen order momentum and technology-related investment themes. It believes corporate earnings will continue to underpin Taiwan stocks over the long term.

Cathay's Taiwan equity research team said on May 21 that Google and Meta had again raised their 2026 capital expenditure plans. Taiwan stocks surged more than 7,000 points in April but have recently corrected after becoming overextended. However, Taiwan-listed companies posted first-quarter 2026 net profit after tax of NT$1.56 trillion, up nearly 50% from a year earlier. Cathay also estimates full-year EPS growth of more than 50% for Taiwan stocks and expects any pullback to be limited.