Capital rotation accelerates, Taiwan stocks surge past 28,100 points, these groups become the main players

Taiwan stocks, supported by the international stock market and a shift in capital flow, demonstrated a strong rally again today. Shortly after the opening, the index surged nearly 300 points, with the gains continuing to expand throughout the session. At one point, it broke through the 28,100-point barrier, surpassing previous highs. Over 24 listed stocks turned red to green simultaneously and hit the daily limit-up. Market trading was lively, and the bullish momentum was evident.

Large-cap stocks stabilize the fundamentals, and capital flow begins to differentiate

The market was led mainly by TSMC (2330), which opened high and continued to rise, reaching a high of 1,470 NT dollars, nearly a 2.8% increase, significantly contributing to the overall market. Hon Hai (2317) followed closely, with an intraday gain of about 1.8%, jointly supporting the market.

Notably, MediaTek (2454), another heavyweight, showed a pattern of opening high and then declining, turning red to black during the session, with a decline exceeding 1% at one point, indicating a clear sign of capital rotation among electronic large-cap stocks.

Memory sector explodes across the board, becoming a hot spot

Recently, the memory sector, which has been upgraded by multiple foreign institutions, fully ignited today, becoming the most dazzling highlight of the market. Powerchip (6770) surged early in the session to hit the daily limit at 40.45 NT dollars, with trading volume surpassing 460,000 shares, quickly becoming the most popular stock in the market.

Nanya Technology (2408) and its memory testing subsidiary Fuman Technology (8131) also performed outstandingly. The company recently announced a 700 million NT dollar investment to build advanced packaging facilities, aiming to capture demand for memory applications in AI and high-performance computing (HPC). This optimism drove the stock price to hit the daily limit at 56.3 NT dollars, with more than 12,000 buy orders hanging in the order book, indicating strong buying interest.

Silicon photonics and third-generation semiconductors rally in tandem

Besides memory, silicon photonics and third-generation semiconductor stocks also attracted capital, taking turns to be in focus. GaAs wafer foundry leader Wusung (3105), after a period of consolidation, showed strength again today, reaching the daily limit at 191 NT dollars before noon.

Market believes that NXP Semiconductors, a Dutch semiconductor company, announced its exit from GaN (Gallium Nitride) 5G power amplifier business, which is expected to benefit Taiwan’s related supply chain by capturing new orders early. This attracted early capital positioning.

The silicon photonics sector also blossomed across the board, with Huaxing Optoelectronics (4979) rising over 9% intraday, WIT (6706) up more than 8%, and BoroWave (3163), Fan Quen (6830), and Walsin Electric (2344) also gaining over 5%. The overall momentum of the sector was strong, reflecting market confidence in long-term themes such as optical communications and high-speed transmission.

Multiple stocks hit the daily limit-up, indicating diversified capital allocation

From today’s market structure, capital allocation appears healthy and diversified, without excessive concentration in a single sector:

Communication networks: Xin Fuxing (4909), China Telecom (6163), Yao Deng (3138), all hit the limit-up.

Electronics components: Yijia (2402), Wende (6761), Wacom (2313), performed strongly.

Other sectors: Construction, chemicals, computer peripherals, automotive, and others also showed performance, with Gongxin (5521), Risheng Chemical (1735), Dazhong Holdings (3701), Jimao (1587) hitting the limit-up simultaneously.

This phenomenon reflects an increasing risk appetite in the market, with funds actively seeking stocks with thematic or lagging rebound potential across various fields.

Market outlook: Year-end portfolio building begins, focus on stable growth stocks

Looking at the full-day performance, Taiwan stocks, driven by foreign buying and domestic portfolio strategies, successfully broke through recent consolidation zones. Against the backdrop of expanding AI applications, the demand for computing power from cloud computing to edge devices will continue to rise, supporting long-term growth potential in semiconductor advanced processes, high-speed transmission, memory, and advanced packaging supply chains.

Investors are advised to prioritize stocks recently upgraded by foreign institutions, with technological leadership or clear operational prospects for next year, to seize opportunities in the year-end rally. However, caution should be taken regarding the faster sector rotation, and stable stocks should be core holdings, especially those aligned with long-term industry trends. Simultaneously, closely monitor international stock market movements and trading volume changes as reference for decision-making.