Micron's Earnings Shine, TSMC ADR Rises; Investment Firm: Taiwan Stocks' Fundamentals Remain Solid

(CNA) Dragged down by the decline in tech stocks, the Nasdaq and S&P 500 closed lower in the US. However, TSMC ADR rose over 1%, UMC ADR surged 6.91%, and Micron's earnings surpassed expectations. Taiwan Futures initially fell in after-hours trading but rebounded to close up 503 points. An investment firm pointed out that Taiwan stocks are benefiting from the AI megatrend and their fundamentals remain solid.

The market continues to worry about the high valuation of tech stocks. Dragged down by the decline in tech stocks, the Nasdaq and S&P 500 closed lower on the 24th. However, falling crude oil prices boosted airline and other travel stocks, leading the Dow to close in positive territory.

The Dow Jones Industrial Average rose 182.06 points, or 0.35%; the S&P 500 index fell 7.24 points, or 0.10%; the Nasdaq Composite Index dropped 110.40 points, or 0.43%; the Philadelphia Semiconductor Index declined 24.31 points, or 0.18%.

Weakness in tech stocks saw Microsoft, Alibaba, and Oracle fall over 2%. TSMC ADR (American Depositary Receipt) rose over 1%, UMC ADR surged 6.91%, and ASE ADR rose nearly 4%.

Taiwan Futures initially fell in after-hours trading before rebounding, closing at 46910 points, up 503 points, a gain of 1.08%.

US memory chip giant Micron Technology announced its earnings, with revenue and profit both exceeding analyst expectations, leading to a rise in its stock price in after-hours trading. Micron estimates that market demand will continue to far exceed supply, and the tight supply of memory chips driven by the AI megatrend will persist beyond 2027.

According to media reports, NVIDIA held its shareholder meeting on the 25th Taiwan time. CEO Jensen Huang stated that NVIDIA's next-generation AI architecture, Vera Rubin, has entered mass production and will be one of NVIDIA's most important products in history. Regarding whether NVIDIA's massive investment can translate into revenue, Huang said that AI has already started doing useful work and can generate profits.

After reaching an intraday historical high of 48218 points on the 23rd, Taiwan stocks experienced sharp fluctuations in the short term, plunging 1057.05 points on the 24th to close at 46043.6 points.

Investment firms analyze that Taiwan stocks have surged in recent years, with their market capitalization surpassing those of the UK, Canada, and India consecutively, attracting attention from economists and international media. Taiwan stocks are benefiting from the AI megatrend, and their economic growth rate this year has a high probability of exceeding 10%. However, fundamentals are inevitably affected by market sentiment.

Senior Taiwan stock analyst Tsai Ming-han also pointed out that the AI sector, which has driven the rise of Taiwan stocks this year, still has a solid fundamental structure. This correction is mainly interpreted as a healthy consolidation after a significant rise, not a trend reversal. (Editor: Lin Chia-hsien) 1150625

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