【Stock Analysis】Calm Before the Storm?! After a 3000-Point Drop, Today's Small Dip, Q1 Champion Warns: Understand the Implications of United Regeneration's +6% Hint!

Calm Before the Storm?! After a 3000-point drop, today's small dip, Q1 Champion warns: Understand the implications of United Regeneration's +6% hint!

Shared in the video for you to know

(Like, subscribe, and turn on notifications)

Let's take a look at today's Taiwan stock market!

The weighted index opened high, fluctuated, and ended lower, down 221.57 points, closing at 42,449.70, with a turnover of 983.863 billion.

Observing the movements of the three major institutions today, foreign investors sold 60.83 billion, investment trusts bought 146.48 billion, and proprietary traders sold 80.64 billion. The three major institutions collectively bought 5 billion, with foreign investors selling for twelve consecutive days, proprietary traders selling for three consecutive days, and investment trusts buying for nineteen consecutive days, totaling 1,977.25 billion in purchases.

U.S. stocks continued their correction last Friday, but compared to the previous trading day, market selling pressure has significantly eased. The Dow Jones Industrial Average, S&P 500, Nasdaq, and Philadelphia Semiconductor Index all closed lower, reflecting the market's continued pressure from intensified competition in the AI industry, underwhelming financial forecasts from tech companies, and rising geopolitical risks in the Middle East. Tech stocks continue to face adjustment pressure, with NVDA and other AI concept stocks remaining the focus of market selling. However, the Philadelphia Semiconductor Index's daily K-line shows signs of contraction, indicating that the bearish momentum is beginning to weaken, and market panic is gradually subsiding, leaving room for a subsequent rebound.

Returning to the Taiwan stock market, affected by the correction of the U.S. semiconductor group, the market opened higher but fluctuated sharply, with gains narrowing, and eventually closed down 221.57 points, at 42,449.70, with a turnover of 983.863 billion. Recently, the Taiwan stock market has shown a correction due to the weak performance of the South Korean stock market and the negative impact of TSMC's earnings call. Fortunately, the volume has shown a contraction, indicating a consolidation phase. Overall, while the Taiwan stock market is still affected by international negative factors and foreign institutional hedging operations in the short term, market volatility is expected to remain high. However, with a significant reduction in margin trading, with a decrease of 27.6 billion in listed companies and 14 billion in OTC companies, totaling a reduction of over 40 billion, and with the eight major state-owned enterprises buying 33.7 billion, the downside space is limited. Additionally, with TSMC closing higher today, it is expected that with the stabilization of large-cap stocks, after the index completes the washout of floating shares, there is still room for a technical rebound. However, due to the relatively high level of foreign institutional futures short positions and the unresolved global political and economic variables, the rebound process may still be accompanied by fluctuations. Short-term investors may pay attention to AI servers, advanced processes, CoWoS, ASICs, and high-speed transmission groups with growth trends, and closely monitor the financial reports of tech giants and international capital flows this week, which will be important indicators for judging whether the Taiwan stock market can continue its rebound.

This week's market focus will shift back to global key economic data and corporate earnings. Taiwan will announce its June export orders, with the market estimating a year-on-year growth rate of over 50% due to the continued strong demand for AI servers, high-performance computing, and high-speed communication. This reflects the resilience of export dynamics. Additionally, the European Central Bank's interest rate decision is expected to remain unchanged, and the market will continue to monitor its latest views on the economy and inflation. On the earnings front, Alphabet (GOOG-US) will release its earnings after the market closes on the 22nd, Texas Instruments (TXN-US), and Intel (INTC-US) will also release their latest earnings after the market closes on the 22nd and 23rd, respectively. Tesla (TSLA-US) will also disclose its latest operating outlook. The earnings and outlook of these tech giants will be an important bellwether for global tech stocks and the Taiwan stock market's AI supply chain.

In terms of large-cap stocks, TSMC (2330-TW) rose 1.31%, closing at 2,320, with its earnings call showing better-than-expected results. Second-quarter revenue was 1.27 trillion, with earnings per share of 27.3, and a gross margin of 67.7%, all exceeding market expectations. Benefiting from the continued demand for AI servers, high-performance computing, and Agentic AI, the company raised its 2026 dollar revenue growth target to over 40%, increased capital expenditure to 60-64 billion dollars, and increased investment in Arizona. Management stated that the A14 process will be trial-produced in 2027 and mass-produced in 2028, with the impact of 2nm and overseas expansion on gross margin being controllable. With the continued strong demand for AI, the company's operating outlook remains optimistic.

Foxconn (2317-TW) rose 0.21%, closing at 234.5, with news of securing its first AI server order from SpaceX. The cooperation is expected to extend to space AI data centers, seizing new opportunities in space computing. The market is optimistic about Foxconn's leading position in global AI server manufacturing and its multi-year experience in low-orbit satellites and space integration, giving it a competitive advantage in both AI and aerospace. Its subsidiary, Hon Hai Precision, has partnered with Ramon.Space to deploy space data centers and participate in the development of the low-orbit satellite "Pearl No. 1." In the future, with SpaceX accelerating the deployment of AI satellites, Foxconn is expected to benefit from the simultaneous growth in demand for AI servers, satellite integration, and space infrastructure.

MediaTek (2454-TW) fell 0.89%, closing at 3,340. Its AI layout continues to bear fruit, with the flagship smartphone chip Dimensity 9500 performing well, driving an increase in high-end market share. The company is also actively expanding its AI computing portfolio, developing automotive chips with NVIDIA, ARM architecture CPUs, and the GB10 supercomputer platform. The market is more optimistic about MediaTek securing a large order for Google TPU, estimated to contribute approximately 2 billion dollars in revenue in 2026, and potentially expanding to tens of billions in 2027. With the continued growth in demand for AI servers and cloud computing, it will become an important engine for future operating growth.

In terms of stocks, TSMC (2330-TW) showed strong rebound performance, becoming a key support, while Foxconn (2317-TW) also maintained a red-chip performance, stabilizing confidence in large-cap stocks. However, pressure remains on the mature process group, with performance relatively weak for (2303-TW) UMC and (6770-TW) Powerchip. The memory group, including (2408-TW) Nanya Technology and (2344-TW) Powerchip Semiconductor, also weakened due to the AI rating correction, indicating that market funds continue to concentrate on AI, high-speed computing, advanced processes, and high-end semiconductor groups with fundamental advantages. The industry rotation trend is still quite obvious.

2026.7.17 Stock Queen Leading Indicator (3576-TW) United Regeneration

(3576-TW) United Regeneration, 17.6=>19, up 10% after the leading indicator,

United Regeneration is an important supplier of solar cells and modules in Taiwan, with businesses covering solar cell and module manufacturing and power plant system construction. Benefiting from the continued rise in global net-zero carbon emissions and green energy demand, the industry's long-term development trend is clear. Recently, market funds have focused on new applications such as solar energy combined with satellite communications and space energy, driving stock price performance to strengthen. On the fundamentals, the company's May revenue has significantly rebounded, with a year-on-year increase of over two percent, indicating improved order and shipment dynamics. The market also expects operations to gradually recover from the previous lows. With the promotion of domestic green energy policies, increased demand for high-performance solar products, and the continuous expansion of new application markets, United Regeneration is expected to benefit from the growth opportunities in the renewable energy industry, attracting funds to lay out in advance.

2026.7.13 Stock Queen Leading Indicator (6505-TW) Formosa Plastics

(6505-TW) Formosa Plastics, benefiting from the rise in international oil prices and the rebound in petrochemical raw material prices, has a more optimistic outlook for the third quarter. The company's second-quarter net profit after tax was 20.77 billion, with a cumulative profit of 41.18 billion in the first half of the year, turning from a loss to a profit compared to the same period last year. Recently, the prices of ethylene, propylene, and butadiene have risen simultaneously, which is expected to boost the profits of the light cracking business. Looking ahead, the supply from refineries in the Middle East and Russia is limited, and with strong summer demand, the price difference between diesel and gasoline is expected to remain high. Additionally, the company is actively introducing ethane cracking processes, expected to be operational in 2027, which is expected to reduce raw material costs and further enhance profitability and competitiveness.

Welcome to subscribe for free

Stock Queen Zhuang Jiahong

https://lin.ee/9cyliMq

7/20

Strong Stock Sharing

【Listed Large-Cap Gainers】

(1467-TW) Nanwei

(6533-TW) Crystalwise

(6969-TW) Cheng Shin Industrial *- Creation

(3532-TW) Taisung

(2388-TW) Weist

(8045-TW) Dayu Optoelectronics

(6477-TW) Anjie

(1515-TW) Lishan

(4763-TW) Materials *-KY

(2634-TW) Han Hsin