Nvidia's strong results fuel Taiwan market rally, TAIEX up 0.8%

The gain was driven by strong performance in semiconductor stocks, particularly TSMC, which rose 0.4% and accounts for nearly 40% of the TAIEX's total market value. As Nvidia's largest customer, contributing over 20% of TSMC's annual revenue in 2026, the chipmaker benefited directly from Nvidia's doubled quarterly revenue to $96.2 billion and 117% year-on-year growth in data centre sales.

Other Taiwanese tech stocks also advanced, with MediaTek up 1.9%, Delta Electronics gaining 2.2%, and Nanya Technology rising 0.2%. Notable gainers included Walsin Technology Corp, which surged 10%, and BizLink Holding Inc and Wieson Technologies Co Ltd, each climbing nearly 10%.

The TAIEX has now risen 58% year-to-date in 2026, marking four consecutive years of annual gains and narrowing the gap with South Korea's KOSPI, which is up around 61% over the same period.

Despite a sharp 6.65% drop in July that saw foreign investors withdraw $22.95 billion from Taiwanese equities, the index has recovered all losses in August, gaining 6.62% so far with one session remaining.

Nvidia's updated forecast of approximately 70% revenue growth in fiscal 2028 underscores sustained demand for AI chips, helping ease recent concerns about overvaluation in the AI sector. Positive results from companies like Salesforce further reinforced the broader technology rally.

Some stocks declined on the day, including Mirle Automation Corp, which fell 9.95%, and Lianyou Metals Co Ltd and Top Bright Holding Co Ltd, each dropping over 6%.

The market movement reflects Taiwan's central role in the global AI supply chain, with TSMC's advanced chip manufacturing remaining critical to Nvidia's product roadmap and revenue outlook.