【0723 Taiwan Stock Market】Strong Defense at 20-Day MA! Weighted Index Rises 25 Points to 44,850; AI Servers and Cooling Resume Rally

Taiwan's stock market opened higher today (23rd) but pulled back to retest its 20-day moving average, before gaining strong buying support and closing higher. Early gains, led by large-cap stocks, pushed the index to a high of 45,089.82 points, but profit-taking pressure later pulled it down to 44,340.76 points (near the 20-day MA), where it found support and rebounded. The index closed up 25.03 points (+0.06%) at 44,850.81 points, with turnover expanding to NT$921.718 billion. On the institutional front, the three major institutional investors in the main market collectively bought NT$16.489 billion, including NT$6.958 billion by foreign and mainland investors, NT$5.337 billion by investment trusts, and NT$4.194 billion by proprietary traders.

I. Market Analysis

The Weighted Index pulled back from highs today to test its 20-day moving average, then found solid support from TSMC (2330-TW) and AI-related stocks, forming a bottom and rebounding. The 20-day MA demonstrated strong defensive power. Turnover on the main market remained high at NT$921.7 billion, and the three major institutions collectively bought NT$16.489 billion, indicating that the high-level consolidation is a healthy rotation. The bullish structure remains intact.

The GreTai Securities Market Index (OTC) performed relatively weakly today. After opening, it was dragged down by declines in small-to-mid cap IC design and silicon wafer stocks, closing down 3.07 points (-0.78%) at 392.11 points, with turnover at NT$188.955 billion. On the institutional side, the three major institutions in the OTC market collectively sold NT$7.707 billion, including NT$5.591 billion by foreign investors, NT$2.508 billion by proprietary traders, while investment trusts逆势 bought NT$3.93 billion. Small-to-mid cap theme stocks still have potential for rotation and follow-through strength.

II. Strong Sectors

Market funds focused on AI server cooling, gallium arsenide communications, and high-end optical components:

1. Gallium Arsenide-Related (Average +2.78%): Benefiting from 5G/6G base station construction and Wi-Fi 7 adoption driving RF module demand, and smartphone PA customers completing inventory drawdowns and initiating urgent restocking orders. Additionally, explosive demand for CPO and VCSEL high-speed optical components in AI data centers has boosted capacity utilization. Key stocks: United Microelectronics (3081-TW) surged 7.25% to NT$355.00, Sino-United Semiconductor (2455-TW) rose 3.93% to NT$198.50, and Win Semiconductors (3105-TW) gained 2.53% to NT$162.00.

2. Cooling Modules / AI Servers (Average +1.75%): Driven by cloud giants continuously expanding AI infrastructure and the sharp increase in power consumption of high-end chips, cooling technology is accelerating the shift from air cooling to liquid cooling. Rising shipments of cold plates and CDUs are boosting profit expectations for leading players. Key stocks: AcBel (3017-TW) surged 7.73% on high volume to NT$2,440.00, Wistron (3231-TW) jumped 5.79% to NT$173.50, and Delta Electronics (3324-TW) rose 2.89% to NT$820.00.

III. Weak Sectors

Memory manufacturing and silicon wafer stocks pulled back on profit-taking at highs:

1. Memory Manufacturing (Average -4.77%): After yesterday's strong surge, short-term momentum buyers and day traders initiated profit-taking and adjustment selling at high levels, causing the entire sector to undergo high-level profit-taking and correction. Key stocks: Nanya Technology (2408-TW) fell 4.38% to NT$426.00, Winbond Electronics (2344-TW) dropped 4.97% to NT$162.50, and Macronix (2337-TW) declined 5.19% to NT$128.00.

2. Silicon Wafers (Average -3.95%): Delayed inventory digestion by some mature-process foundries and consumer electronics customers has led to观望 in long-term contract fulfillment, triggering short-term profit-taking. Key stocks: GlobalWafers (6488-TW) plunged 9.68% to NT$1,120.00, Taiwan Semiconductor (3532-TW) fell 9.94% to NT$421.50, and Holtek Semiconductor (6182-TW) corrected 1.94% to NT$126.50.

IV. Institutional Investment Picks

Refer to the original text for our detailed stock selection strategy!