TSMC and Financial Stocks Prop Up Index! Investment Strategies Amid Hidden Turbulence

SpaceX is making another major move. Reports indicate that SpaceX filed an application this week with the U.S. Federal Communications Commission (FCC) to launch 100,000 third-generation Starlink satellites. Each V3 satellite will offer more than 10 times the bandwidth of current V2 satellites, and with the number of launches exceeding 10 times that of V2, the total bandwidth could increase over 100-fold. Additionally, Starlink V3 satellites will operate at approximately 350 km altitude, significantly lower than the 550 km of V2 satellites, reducing minimum latency by about half.

Before SpaceX's IPO, CEO Elon Musk mentioned the 100,000-satellite plan during a dialogue with JPMorgan Chase CEO Jamie Dimon. Therefore, this week’s application signals that the V3 satellite launches are now officially on schedule, making low Earth orbit (LEO) satellite supply chains a long-term investment focus.

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Now, turning to the Taiwan stock market. Investors should note that while TSMC is holding above its monthly line, the broader market has fallen below the monthly line for two consecutive trading days. Meanwhile, the financial sector index has posted four consecutive green days, creating a scenario where TSMC and financial stocks are propping up the index while most other stocks undergo corrections. Although the index may have limited downside, individual stock volatility has increased, with even some high-priced AI performance stocks experiencing corrections. As a result, investment difficulty has significantly increased, and a relatively conservative strategy is recommended.

However, there’s no need to panic. Focus on stocks with strong June revenues and Q2 earnings growth potential, particularly those trading at relatively low levels or showing buy signals. Additionally, monitor leading stocks in recently strong technical sectors for signs of renewed strength, such as: Passive Components: Yageo (2327-TW); Silicon Wafers: GlobalWafers (6488-TW); ABF: Kinsus (3189-TW); Power Semiconductors: Advanced Semiconductor Engineering (8261-TW). For AI performance stocks that broke below the quarterly line ahead of the broader market—such as Delta Electronics (2308-TW), Hon Hai (2317-TW), AcBel (3017-TW), Tripod Technology (2368-TW), and King Yuan Electronics (2449-TW)—watch for potential reversal signals.

Low Earth Orbit Satellite and June Revenue Theme Stocks:

Low Earth Orbit Satellite: Wistron NeWeb (6285-TW), Synchrontek (3491-TW), AcBel (6282-TW), Tera Group (6271-TW), United Silicon (2455-TW), Win Semiconductors (3105-TW)

June Revenue: MediaTek Design (3443-TW), Taishin Electronics (2383-TW), Laminates Electronics (6213-TW), Zhen Ding Tech - KY (4958-TW), Nanya PCB (8046-TW), Accton Technology (2345-TW), Kingboard Holdings (3413-TW), Winway Technology (6515-TW), Chipbond Technology (8021-TW), Chuan Hua (2059-TW), Ying Mei (3693-TW), Etron Technology (5351-TW), Realtek Semiconductor (2379-TW), Nanya Technology (2408-TW), Winbond Electronics (2344-TW)

Stock-Specific Analysis:

Synchrontek (3491-TW): Part of SpaceX and Amazon’s LEO satellite supply chain. Satellite specification upgrades have significantly increased the number of components per satellite.

Tera Group (6271-TW): Supplies high-frequency ceramic substrates and packaging technology for RF transceiver modules in LEO satellite bodies.

AcBel (6282-TW): Provides high-efficiency power solutions for LEO satellite ground stations, gateway stations, and communication cabinets.

United Silicon (2455-TW): Supplies key epitaxial materials required for high-frequency RF components in satellite communications.

MediaTek Design (3443-TW): A major ASIC design service provider under TSMC, deeply integrated with TSMC.

Zhen Ding Tech - KY (4958-TW): Supplier of AI application servers, optical modules, and IC substrates.

Kingboard Holdings (3413-TW): Core contract manufacturer for Applied Materials. New capacity in Thailand is set to come online.

Nanya PCB (8046-TW): Supplies substrates for high-end AI servers, 800G/1.6T high-speed switches, CPUs, and ASICs.

Investors are reminded again: recent market and stock volatility is high, so leverage should be reduced to avoid excessive risk. However, the long-term bullish trend for Taiwan stocks remains unchanged, with fundamentals driving performance. Focus on industries and stocks with strong June revenues and Q2 earnings growth. Additionally, TSMC’s earnings call on July 16 and the密集 release of U.S. tech giants’ earnings at the end of July could boost related supply chains. For more insights on promising industries and stocks, join our LINE@.

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Source: Moore Investment Consulting – Analyst Ye Junmin

The company has no improper financial interests in the securities it recommends. Past performance does not guarantee future profits. Investors should make independent judgments, conduct careful evaluations, and assume investment risks accordingly.