Reported about 1 year ago
Following the end of the Dragon Boat Festival holiday on June 11, 2024, profit-taking pressure emerged in the Taiwan stock market, particularly affecting tech stocks. While the introduction of new AI products at Apple's WWDC lacked innovation, leading to disappointing market expectations, tech stocks saw a downturn. Analysts suggest that the current bullish trend has factored in this year's earnings, indicating a potential correction at higher levels. The third quarter is expected to bring increased volatility, with favorable prospects for eventual upward movement in the long term, particularly for tech and semiconductor ETFs. Among five semiconductor ETFs, only Yuanta Semiconductor Yield (00927) bucked the trend by rising; other ETFs experienced declines. Notably, ETFs such as Yuanta Taiwan Semiconductor 30 (00904) and Yuanta Semiconductor Yield (00927) have risen by over 18% this year, showing strong performance in the semiconductor sector. Managers of these ETFs foresee continued market momentum, especially focusing on AI, NVIDIA-led technological advancements, and the performance of TSMC and the AI supply chain. Analysts note that Apple's adoption of AI features, particularly using NVIDIA-produced AI chips, showcases NVIDIA's technological leadership, akin to TSMC's advanced manufacturing technology, creating dominant positions in the AI market. This trend indicates a positive outlook for the semiconductor industry, with Taiwan's comprehensive semiconductor industry chain playing a crucial role globally. As AI applications expand, semiconductor companies in Taiwan stand to benefit, with various analyses pointing to favorable prospects as AI adoption grows across industries. Anticipating increased demand for tech innovations, this trend is expected to drive growth in the tech industry. More analyses in the Commercial Times include insights on battery material supply chains and Quanta's foray into 5G private networks and smart factories, along with updates on tax reductions being extended until the end of 2024.
Source: YAHOO