Reported 12 months ago
Despite recent high-level fluctuations in Taiwan's stock market, investment trust corporations are optimistic about the unchanged bullish trend, driven by the momentum of AI+APPLE bringing the 'Double A Themes' and the cash dividends to be distributed by listed companies in July estimated to be nearly NT$700 billion, which will bring in significant capital inflows, adding momentum to the bullish market. Cathay Investment Trust states that the market remains bullish amid the rapid growth of AI, and with themes like NVIDIA's next-generation super chip GB200 and Apple's AI smartphones emerging in the second half of the year, more momentum will be injected into Taiwan's stock market, heading towards a golden age of technology. Cathay Taiwan 5G+ Fund (00881) manager Su Dingyu mentioned that with Apple's announcement of the 'Apple Intelligence' era in mid-June, AI smartphones are set to become mainstream in the market. By riding the wave of AI, Cathay Taiwan 5G+ Fund has achieved a performance of 25.66% in the first five months of the year, ranking second in the Taiwan stock prototype ETF and leading in other periods as well. By investing in Cathay 00881, which overlaps with nearly 80% of the suppliers for NVIDIA and Apple, investors can position themselves in the Taiwanese semiconductor market and capitalize on the 'Double A Themes' of AI+APPLE in one ETF investment. Taiwan Semiconductor Manufacturing Company (TSMC) is the largest component of 00881, accounting for 31.6%, with an appropriate and balanced proportion. With TSMC's 2-nanometer advanced process set to enter mass production by 2025, TSMC has become a key player in future AI armament races. In the AI chip outsourcing market, TSMC already holds a market share exceeding 90%, ensuring its leadership position regardless of who wins the AI market. The second-largest component of 00881, Hon Hai Precision Industry (Foxconn), reported a record-high revenue of NT$550.2 billion in May. MediaTek is expected to launch its latest flagship chip, the Dimensity 9400, in the fourth quarter of this year, focusing on AI features, potentially creating another peak in the AI smartphone market. With robust AI demand and inventory replenishment in enterprises driving Taiwan's export industry into a positive cycle, the information and communication technology and electronic product manufacturing industries' export performance is showing a strong non-offseason trend, with supply chain profits consistently on the rise. The market is expected to adjust the valuation of related industries, as well as the favorable sector rotation in Taiwan stocks, alongside the cash dividends from listed companies injecting capital inflows, further boosting the bullish market momentum. Uni-President Investment Trust's Taiwan stock investment team suggests that with the second half of the year entering the electronic peak season, consumer product launches, and AI product releases, funds and market focus remain on electronics. While the prices of related concept stocks and supply chain stocks may fluctuate after short-term rises, under the unchanged bullish trend, it is advisable to enter the market opportunistically during corrections. Entrust the reputable investment team with its outstanding performance to operate regularly and incrementally invest in active Taiwan stock funds, potentially accelerating wealth accumulation. Taking Uni-President Taiwan Dynamic Fund as an example, it gathers a variety of technology stocks such as Taiwanese electronic components, semiconductors, and electromechanical industries, participating in the growth opportunities of Taiwan's technology industry. According to Morningstar data as of June 30, the fund has achieved a cumulative return rate of 506.32% since its establishment, maintaining performance in the top 25% of similar types throughout various periods, surpassing the average performance of similar funds.
Source: YAHOO