Post by Erudite Asia

TSMC Turns Positive, Hits 1,700 NT$, Driving Taiwan Stocks to New Highs! However, Many Hot Stocks Turn Negative as Bulls and Bears Intensify Battle On January 8, 2026, Taiwan stocks reached new highs, driven by Taiwan Semiconductor Manufacturing Company (TSMC) hitting the 1,700 NT$ mark intraday. Despite a negative start due to a 2.67% decline in TSMC's ADR the previous night, strong intraday buying lifted TSMC shares from an opening price of 1,660 NT$ to challenge the 1,700 NT$ level, supporting the weighted index to a record high of 30,593.49 points. However, resistance at these highs led to increased volatility, with the index fluctuating between 30,450 and 30,500 points. In the broader market, several major stocks such as Hon Hai, MediaTek, Quanta, Delta Electronics, and Wistron saw declines, while mid- and small-cap stocks like Macronix and Ko Ning Wei experienced amplified swings. UMC, AU Optronics, Walsin, and Tong Hsing shifted from gains to losses, reflecting a cooling in short-term investor enthusiasm. Capital flows showed a divergence: foreign investors have been reducing TSMC holdings since early 2026, while domestic investment trusts and proprietary traders increased their positions, creating a short-term pressure dynamic. The market also faces external pressure from recent profit-taking in U.S. stocks and semiconductor sector volatility amid policy uncertainty and awaited economic data. Technically, the market has set consecutive highs but with a declining advance-decline indicator, indicating funds are concentrated mainly in heavyweight stocks and certain sectors, forming a K-shaped pattern. The current prices are significantly above monthly and quarterly moving averages, signaling likely upcoming profit-taking and consolidation. Institutions highlight that upcoming December 2025 revenue announcements could trigger corrections if earnings disappoint, though medium-term fundamentals remain supportive. TSMC’s expected capital expenditures of up to 50 billion USD in 2026 and sustained demand from AI computing underpin sectors like power upgrades, cooling, silicon photonics, and advanced process equipment. Overall, despite short-term high-level volatility and profit-taking pressures, Taiwan stocks have strong heavyweight support and favorable AI-driven trends, suggesting potential for sustained consolidation. Institutional advice favors avoiding chasing overheated stocks and gradually building positions in fundamentally supported thematic groups following correction of current divergences. #Semiconductors #Taiwan https://lnkd.in/gzD3Nbhz