Taiwan Stock Market Rallies Over 200 Points, Surpassing 46,000 as Nanya Technology Hits Limit Up Amid Earnings Season Fervor

Despite renewed U.S.-Iran tensions and the potential re-blockade of the Strait of Hormuz, U.S. tech indices closed higher this morning. Asian markets, including Japan and South Korea, followed suit with rebounds. Taiwan's stock market (Taiwan Stock Exchange) opened slightly higher on Wednesday (9th), and although TSMC (2330-TW), which will hold its earnings call next week, declined in early trading, Nanya Technology (2408-TW), buoyed by its upcoming earnings announcement, surged to the daily trading limit early in the session. Largan Precision (3008-TW), which held its earnings call in the afternoon, also rallied over 4%, driving the index to rise more than 200 points at one point, breaking above the monthly moving average and regaining the 46,000-point level.

The main index opened at 45,805.62 points but briefly turned negative due to heavy selling pressure. The intraday low was 45,612.08 points, and the high reached 45,850.71 points. Total market turnover was estimated at NT$838.6 billion.

Senior securities analyst Huang Han-cheng noted that although the index had broken below the monthly moving average, sector rotation among electronics stocks—particularly passive components, memory, and power semiconductors—remained active. He expects power semiconductors to lead the next leg of gains, with the market maintaining a high-level consolidation trend.

Additionally, strong performances in Japan and South Korea's stock markets provided bullish sentiment for Taiwan's market.

Individual stock momentum was driven by earnings-related themes. Qianfu Technology (8383-TW), which reported June revenue of NT$663 million—up 200% year-on-year—gapped up to the daily limit at NT$69.7. TSMC declined, while Hon Hai (2317-TW) traded near its flat line at NT$237.5. Largan Precision, holding its earnings call today and set to announce Q2 earnings and Q3 outlook, regained the NT$4,000 level with a gain of over 1%. Nanya Technology, holding its earnings call tomorrow, hit the upper limit in early trading.

Among sector groups, IC substrate makers including ChipMOS (3189-TW), Unimicron (3037-TW), Zhen Ding-KY (4958-TW), and Nanya PCB (8046-TW) posted gains, with Zhen Ding-KY showing the strongest performance.

Uni Securities noted that renewed U.S.-Iran conflict and rising oil prices, coupled with five consecutive days of foreign investor net selling and a futures net short position exceeding 80,000 contracts, suggest continued high volatility. However, positive catalysts remain: NVIDIA's new Vera CPU gradually expanding market share, SpaceX receiving approval to launch up to 100,000 third-generation Starlink satellites, next week's TSMC earnings call, and the upcoming biotech exhibition. These factors support a bullish long-term outlook for Taiwan equities.

The firm advised maintaining flexible capital allocation, avoiding excessive leverage, and focusing on large- and mid-cap AI-related stocks with strong liquidity. Long-term recommended sectors include TSMC and advanced process/packaging, high-speed transmission (including optical), substrates and PCBs, chassis rails, power semiconductors, specialty chemicals, and the bicycle industry.

Kuo Pao Securities suggested now is an opportune time to invest in AI leader stocks. Recent reports indicate Delta Electronics (2308-TW), a power supply leader, is initiating a second round of price hikes, estimated at 5%–20%. This reflects strong AI demand and rising upstream material costs, indicating a forming trend of price increases across the power supply chain. Other major suppliers are expected to follow, offering a favorable entry point for related stocks amid current price corrections. Key names include Delta Electronics, Sunlord (3211-TW), and Songchuan Precision (7788-TW).

Kuo Pao Securities added that rapid expansion in AI infrastructure demand, combined with upstream material shortages and price increases, is likely to push Delta's power product pricing higher. This not only supports gross margins but could also trigger a broader pricing effect across the power supply chain, creating investment opportunities in related stocks.

In U.S. market action this morning, the Dow Jones Industrial Average fell 576.76 points, or 1.09%, closing at 52,348.39. The Nasdaq Composite rose 51.96 points, or 0.20%, to 25,870.65. The S&P 500 dropped 21.14 points, or 0.28%, to 7,482.71. The Philadelphia Semiconductor Index surged 274.45 points, or 2.23%, to 12,574.97. The NYSE FANG+ Index gained 26.48 points, or 0.15%, to 17,324.11.

TSMC's ADR (TSM-US) rose 1.02%. NVIDIA (NVDA-US) gained 3.65%.