Is it a golden buying opportunity? TSMC, Largan Precision, and Gigaopto

I. Market Focus and Structural Analysis

Today, the Taiwan Stock Exchange presented an "upward surge and downward wash" pattern, closing down 105 points at 39,933 points, with a turnover of approximately NT$1.1 trillion, which is a normal correction after high-level fluctuations.

During the session, the market once rebounded strongly to 41,155 points, but due to insufficient market confidence and stop-loss selling pressure, the index turned negative after 9:40, indicating that short-term funds are still unstable.

After the index broke through the key technical support, it triggered a chain reaction of selling pressure, which is a typical correction trend resonating with both emotional and technical aspects.

II. Core Reasons for This Correction

（One）External Factors

Global tech stock revaluation: The PHLX Semiconductor Index plummeted, and the market began to review the return on investment in AI capital expenditure.

AI concerns are rising: Some tech giants' free cash flow is weakening, raising questions about investment efficiency.

Geopolitical risks: The Middle East situation pushed up oil prices, exacerbating inflation expectations.

Monetary policy uncertainty: On the eve of the Federal Reserve's interest rate decision, rate hike expectations are heating up, and the risk premium is widening.

Asian market linkage: Korean stocks circuit breakers, Japanese stocks plummeted, and foreign capital is adjusting its positions in Asian stocks.

（Two）Internal Factors

High leverage structure: The balance of margin trading has surged to a high level, and the "four loans in one" has amplified market volatility.

Forced liquidation effect: After breaking through the technical line, the maintenance rate pressure is triggered, forming a liquidity spiral.

Funds loosening: Short-term funds are exiting, and market confidence has not yet recovered.

III. Divergence Between Fundamentals and Stock Market

Taiwan's economic momentum is robust:

GDP forecast revised upwards to 10%-11% (the highest in decades)

Exports and foreign orders continue to expand

AI and ICT product demand exceeds expectations

Private investment and consumption are rising in tandem, presenting a "hot inside and out" pattern.

The revenue of listed companies increased by nearly 36% year-on-year, and corporate profits still have substantial support.

This shows that this stock market correction is a "capital market valuation adjustment," not a weakening of fundamentals.

IV. Differences from Historical Corrections

Past (2000, 2008, 2015): Fundamentals simultaneously weakened or even entered recession.

This time: Corporate profits, gross margins, and revenue are still growing.

Conclusion: This is a "valuation and leverage correction," not a systemic collapse.

V. Industry and Long-term Structural Advantages

Taiwan holds a strategic position in the global supply chain, with semiconductors and AI hardware being irreplaceable.

The leading advantage of advanced processes and a complete supply chain supports long-term competitiveness.

Continuous capital expenditure by global tech giants (approximately $80 billion) continues to drive exports and investment.

VI. Financial and Policy Perspectives

This correction helps the healthy development of the market and is a necessary process of bubble deflation.

The government should not overly interfere with price mechanisms but should pay attention to the expansion of credit risk.

It is recommended to strengthen the supervision of high leverage (four loans) to prevent the spillover of financial system risks.

VII. Investment Strategy Recommendations

Short-term strategy:

Avoid chasing highs before the downtrend reverses

Pay attention to the Federal Reserve's policy and the earnings of tech leaders

Wait for bottoming signals and price-volume stabilization

Medium and long-term layout:

Focus on AI and semiconductor supply chains (with competitive barriers and order visibility)

Choose companies with strong free cash flow and good capital efficiency

Adopt a "buy on dips, not on rallies" approach

Defense and allocation:

Use finance, traditional industry domestic demand, and high-yield stocks as havens during fluctuations

Maintain adequate cash to increase operational flexibility

VIII. Conclusion

This sharp decline in the Taiwanese stock market is essentially a "valuation, leverage, and emotion" correction, not the beginning of an economic recession. Under the unchanged long-term trend of AI, the correction provides an opportunity to re-evaluate risk and return. In the short term, one should carefully respond to volatility, and in the medium and long term, one should still focus on the industry growth trend and invest in high-quality assets.

To succeed, you must be different

Next to a crash, there is always a big profit

This is an eternal law of the stock market

Which individual stocks are really rising?

Which individual stocks are rising in vain?

Which individual stocks should be weakened and strengthened?

Very important! You must know

If you have any questions about your holdings

Don't know how to handle or adjust

Welcome to send a LINE private message to Master Brother

Leave your name and contact phone number

Master Brother will support you with righteousness and help you

Help you exchange the wrong, non-rising convenience store stocks

To the right, future-rising stocks

Take you back to a colorful life

A change of mind can change your life

The 13th champion of the Commercial Times Performance Competition, outstanding performance surpassing peers, professional strength is well-known!

More first-hand information and soaring stock opportunities → Join the Master Brother Soaring Stock Xintian Di big family

LINE@ link URL: https://line.me/R/ti/p/%40gold99

Telegram link URL: https://t.me/gold0999

YT personal channel: youtube.com/@master55688

Raise your hand, remember! Like, subscribe, share, turn on the small bell

Consultation hotline 02-2321-9933 (24-hour professional service)

Let more people see our videos

Consultation hotline 02-2321-9933 (24-hour professional service)

Article source: Lun Yuan Securities Chen Xuejin analyst

The individual securities analyzed and recommended by our company

Have no improper financial interest relationship. Past performance does not guarantee future profits.

Investors should make independent judgments, carefully evaluate, and bear investment risks themselves.