【Stock Surge Alert】Did You Get Washed Out Again in Taiwan's Market Rebound? 【6505 Formosa Chemicals】⊕! 【1810 Hoshine】⊕ 【3576 United Renewable】+6%, Is the Short Squeeze Just Beginning?

[Warning to Retail Investors] Did you get shaken out again during Taiwan's stock market rebound? 【6505 Formosa Chemicals】⊕! 【1810 Hoshine】⊕ 【3576 United Renewable】+6%, is the short squeeze rally just beginning?

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

The weighted index opened high and continued to rise, closing up 1,783.17 points at 44,232.87, with a trading volume of NT$835.625 billion.

Examining today's institutional trading activities: foreign investors sold NT$4.331 billion, investment trusts bought NT$17.232 billion, and dealers bought NT$3.507 billion. Combined, institutions bought a net NT$16.407 billion. Foreign investors have sold for 13 consecutive days, dealers shifted from selling to buying, and investment trusts have bought for 20 consecutive days, totaling NT$214.957 billion.

On Monday, U.S. markets showed mixed results. The Dow Jones, S&P 500, and Nasdaq all closed lower, but the Philadelphia Semiconductor Index rose 0.6%, indicating continued support for semiconductor and AI stocks. Tech stocks like AMD, Microsoft, Intel, and Micron showed relative strength, boosting market risk appetite. However, investors should remain cautious about escalating Middle East geopolitical risks and rising oil prices, which could increase inflationary pressure and affect global market volatility.

Encouraged by stabilizing U.S. tech stocks and improved market positioning, Taiwan's market launched a strong rebound today. Led by major electronics stocks, the index opened high and climbed throughout the day, peaking at 44,232.87. It closed up 1,783.17 points at 44,232.87, with a trading volume of NT$835.625 billion, reclaiming the 20-day moving average. Market confidence has clearly improved. Margin financing on the main board has decreased by NT$46.5 billion over two consecutive trading days, and on the GreTai Securities Market by NT$22.296 billion over three days, totaling a reduction of NT$68.796 billion. This effective cleansing of speculative positions has stabilized market holdings, laying a solid foundation for a short-term rebound from oversold conditions. Key stocks like TSMC surged, driving the entire semiconductor sector higher. Hon Hai, MediaTek, Delta Electronics, and United Microelectronics also rose together, becoming the main drivers pushing the index upward. Major electronics stocks have once again taken center stage.

Overall, global markets are gradually retesting key technical support levels after corrections. Stabilizing U.S. tech stocks and South Korea's market rebound, combined with rapidly cooling margin financing and stabilized investor positioning in Taiwan, all support the continuation of a short-term rebound. However, before international political and economic variables and the results of the super earnings week are fully revealed, the market is expected to remain in a range-bound consolidation. If TSMC continues to stabilize and drives the expansion of the AI supply chain, the index may challenge higher resistance zones. Strategically, investors should continue to focus on semiconductors, AI servers, memory, PCBs, CCL, low-orbit satellites, high-end electronics, and defense-related stocks to capitalize on sector rotation opportunities. Additionally, this week marks the U.S. super earnings season, with market focus on AI investments, cloud service demand, and corporate capital expenditure outlooks. Tesla and Alphabet will report their Q2 earnings on July 22, with high expectations for AI strategies, cloud business growth, and profitability. Intel will report on July 23, offering insights into the semiconductor cycle and PC market recovery. On the same day, the European Central Bank will announce its latest interest rate decision, with markets widely expecting rates to remain unchanged, though commentary on future monetary policy will influence global capital flows.

Regarding major stocks: TSMC rose 3.88% to NT$2,410. Its earnings call delivered better-than-expected results: Q2 revenue reached NT$1.27 trillion, EPS was NT$27.3, and gross margin improved to 67.7%, all exceeding market expectations. Benefiting from rising demand for AI servers, high-performance computing, and Agentic AI, the company raised its 2026 USD revenue growth target to over 40% and increased capital expenditure to $60–64 billion. It is also increasing investment in Arizona. Management stated that the A14 process will enter trial production in 2027 and mass production in 2028. The impact of 2nm and overseas expansion on gross margin is manageable. With strong AI demand continuing to drive growth, the company maintains an optimistic outlook.

Hon Hai rose 4.90% to NT$246. It is reported to have secured its first AI server order from SpaceX, with potential for further collaboration on space-based AI data centers, targeting next-generation space computing opportunities. The market views Hon Hai as having a competitive edge in AI and aerospace, thanks to its global leadership in AI server manufacturing and years of experience in low-orbit satellites and space integration. Its subsidiary Hon Hai Technology has partnered with Ramon.Space to develop space data centers and participated in the development of the 'Pearl' low-orbit satellite. As SpaceX accelerates AI satellite deployment, Hon Hai is expected to benefit from growing demand for AI servers, satellite integration, and space infrastructure.

MediaTek rose 9.88% to NT$3,670. Its AI strategy continues to bear fruit. Beyond strong sales of its flagship smartphone chip Dimensity 9500, which boosted high-end market share, the company is actively expanding its AI computing footprint. It is collaborating with NVIDIA on automotive chips, ARM-based CPUs, and the GB10 supercomputer platform, with promising future growth. The market also expects MediaTek to secure a major Google TPU order, potentially contributing around $2 billion in revenue by 2026 and expanding to tens of billions by 2027. Rising demand for AI servers and cloud computing will become a key engine for future growth.

Sector-wise, passive component stocks, which fell sharply yesterday, rebounded across the board. Holtek Semiconductor surged 9.82%, and Yageo also rose. PCB and high-end materials attracted renewed capital inflows. Unimicron and ChipMOS both hit涨停 (trading limit), while Nanya Technology rose 7.69%. TTM Technologies and Taipower also hit涨停, reflecting strong and sustained demand for AI servers, high-speed transmission, and high-end PCBs, with capital refocusing on the AI supply chain.

Defense and drone-related stocks also strengthened. Aerospace Industrial Development Corporation (AIDC) is expected to win drone-related contracts or assist winning manufacturers in mass production. If the initial trainer aircraft project proceeds, output could reach 60–70% of the advanced trainer project, injecting new growth momentum into military business. Hoshine, Taiwan's leading bathroom fixture company, has recently expanded into composite material casings for armored vehicles and unmanned vehicles, benefiting from policies promoting domestic defense, shipbuilding, and aircraft manufacturing. With market focus on the unmanned vehicle supply chain and rising U.S.-Iran tensions fueling defense themes, Hoshine's recent entry into the unmanned vehicle sector—currently involved in casing R&D with clients—has turned Q1 EPS from loss to profit. With government support for domestic drone production, its potential in the defense sector is promising.

Thunder Tiger rose 4.65%, Yiqi and Qianfu Precision also showed strong gains, indicating high market expectations for domestic defense and drone industry growth. If trading volume continues to rise, these stocks may see further upside.

July 17, 2026: Futures market leader preview for United Renewable (3576-TW)

United Renewable (3576-TW): from 17.6 to 19.75, +12% after the preview.

United Renewable is a key domestic supplier of solar cells and modules, with operations covering solar cell and module manufacturing and power plant system construction. Benefiting from global net-zero emissions and rising green energy demand, the industry's long-term trend is clear. Recently, market capital has focused on emerging applications combining solar energy with satellite communications and space energy, driving stronger stock performance. Fundamentally, the company's May revenue rebounded significantly, up over 20% year-on-year, indicating improved order and shipment momentum. The market expects operations to gradually emerge from their previous downturn, and as