Taiwan Investor Optimism Cools on Inflation and AI Concerns

Cathay Financial Holdings publishes a monthly survey of national economic confidence, tracking consumer and asset-allocation trends through public views on the economy, stock market and investment risk. As the expansion of the AI industry lifts corporate earnings expectations, confidence in Taiwan stocks has strengthened. Record readings in the related indices also reflect a significant increase in investors’ willingness to take on risk.

Cathay Financial Holdings’ latest May survey showed that its Taiwan stock optimism and risk appetite indices both reached their highest levels since the survey began. Nearly half of respondents said they intended to participate in the annual ex-dividend and ex-rights season. Even during tax season, most said they did not plan to sell their holdings before paying taxes, signaling continued confidence in the market outlook and dividend income.

Cathay Financial Holdings publishes a monthly survey of public confidence in the economy, employment and financial markets. The continuing generative AI investment boom and bullish expectations for NVIDIA have made technology stocks a major driver of confidence in Taiwan equities and investors’ appetite for risk.

Cathay Financial’s March survey found that 56% of respondents expected Taiwan stocks to continue rising. Its stock market optimism and risk appetite indexes both reached their highest levels since the survey began. The results reflect positive sentiment toward the outlook for AI and NVIDIA, while public interest in participating in the stock market has increased markedly.

Cathay Financial Holdings' February 2026 Economic Sentiment Survey gauges public views on the economy, consumption and financial markets. The results showed that the economic outlook and willingness to spend both improved, but inflation expectations remained above the estimate from Taiwan's Directorate-General of Budget, Accounting and Statistics. The findings point to stronger economic confidence but persistent price pressures.

Respondents expected Taiwan's economy to grow 3.16% in 2026. Despite a recent stock-market surge fueled by optimism over the AI industry's prospects and positive results from TSMC, bullish sentiment toward equities declined and investors grew more cautious. The divergence suggests that people remain upbeat about the broader economy while becoming wary of a market trading at elevated levels.