【Stock Analysis】Taiwan Stocks Surge! Dual Strength Leads to Limit Up! 【3441 Lian Yi Guang】⊕ Verified! Next Diamond Black Horse?

Taiwan's stock market surged, led by tech stocks such as TSMC, Hon Hai, and MediaTek. AI-related concept stocks are favored by the market.

The weighted index today rose by 3186.45 points, closing at 43119.75, with a turnover of 8337.14 billion.

Observing the capital flow of the three major institutions today, foreign investors bought 675.53 billion NT dollars, investment trusts bought 333.82 billion NT dollars, and proprietary traders sold 162.59 billion NT dollars. The three major institutions collectively bought 846.76 billion NT dollars, with foreign investors switching from selling to buying, proprietary traders selling for six consecutive days, and investment trusts buying for twenty-eight consecutive days, totaling a net buy of 3022.98 billion NT dollars.

U.S. stocks rebounded strongly on Thursday, driven by better-than-expected earnings from large-cap tech stocks, quickly reviving market risk appetite. The semiconductor sector saw a revenge rally, with the Philadelphia Semiconductor Index surging over 8%, and the Nasdaq Index rose 2.78%, ending a six-day losing streak. The S&P 500 Index also rose, and the Dow Jones Industrial Average jumped 613 points, indicating a significant recovery in market confidence. Notably, Microsoft (MSFT-US) surged nearly 16%, setting a record for the largest single-day market value increase in corporate history, mainly due to Azure cloud business growth far exceeding market expectations, once again verifying that AI investment has started to translate into corporate profits, driving funds to flow back into tech stocks. Semiconductors and memory stocks also became market focuses, with SK Hynix (SKHY-US) ADR surging 17.52%, Micron (MU-US) rising 18.36%, and SanDisk (SNDK) soaring 25.99%, reflecting market optimism for the continuous high-speed growth of AI servers, HBM high-bandwidth memory, and enterprise storage demand. Taiwan ADRs also surged across the board, with TSMC (TSM-US) ADR rising 7.64%, ASE (ASX-US) ADR surging 11.73%, and UMC (UMC-US) ADR rising 10.70%, signaling a strong rebound for Taiwan's electronic heavyweight stocks. Overall economic data also brought bullish news, with the U.S. June PCE price index falling 0.1% month-on-month, mainly due to falling energy prices, with the year-on-year rate dropping from 4.1% in May to 3.7%. The core PCE rose 0.1%, below the market estimate of 0.2%, with the year-on-year rate falling to 3.3%, indicating that inflation pressure is continuing to ease, helping the market raise expectations for the Fed's future rate cuts and further supporting the rebound in U.S. stock valuations. On the other hand, Amazon (AMZN-US) also reported strong second-quarter earnings, benefiting from strong demand for AWS cloud business, with quarterly profits more than tripling year-on-year, and post-market stock prices rising about 9%, once again highlighting that AI cloud infrastructure remains the most important growth engine for the global tech industry, also making the market highly optimistic about AI capital expenditure in the second half of the year.

Inspired by the strong performance of U.S. stocks, the weighted index today opened high and closed higher, rising 3186.45 points to close at 43119.75, with a turnover of 8337.14 billion. Today, Taiwan's stock market opened higher, led by electronic heavyweight stocks, with the weighted index jumping higher. It not only quickly recovered short- and medium-term averages but also once refreshed the historical largest intraday gain record. TSMC (2330-TW) rose to the limit price of 2425 during the session, becoming the most important driving force for the market. It also drove the entire AI supply chain to turn stronger, including IC design, servers, PCB, substrates, equipment, and high-speed transmission groups, all rising simultaneously. Funds quickly flowed back into electronic stocks, and the market presented a flourishing scene. In addition, the memory, passive components, and network communication groups, which had fallen deeply in the previous round, also attracted active buying after sufficient capital adjustment, and their stock prices rebounded strongly. With the continuous expansion of AI demand and the maintenance of high capital expenditure by enterprises, the operating outlook for the related supply chain in the second half of the year still has growth space. Market funds are once again focusing on AI concept stocks with clear fundamental advantages.

Looking ahead, the recent decline in margin trading balances has helped clean up market float, enhancing the sustainability of the rebound. However, whether the short-term strength can be sustained will depend on whether foreign institutional buying continues to flow back and whether international funds will reallocate to Asian tech stocks. Operational strategies should avoid chasing prices and adopt a phased approach, prioritizing high-quality stocks with long-term trends such as AI, high-performance computing, advanced packaging, memory upgrades, and servers. During the process of shock adjustment, seize the medium- and long-term investment opportunities brought by the continuous growth of the AI industry.

In terms of heavyweight stocks, TSMC (2330-TW) rose 9.98%, closing at 2425. The market reported that it would raise wafer foundry prices, with a 5% to 10% increase for advanced processes below 7 nanometers, and HPC high-end computing orders may be charged an additional 10% to 15%. There is also room for price adjustments for mature processes. This price increase reflects TSMC's gradual enhancement of market pricing power through its technological leadership, scarce capacity, and high delivery capability. With the increase in overseas expansion, equipment, manpower, and depreciation costs, price adjustments help maintain profit levels. Looking ahead to 2026-2027, AI will transition from Generative AI to Agentic AI, driving continuous growth in computing demand. Combined with the growth of advanced processes and HPC demand, we remain optimistic about TSMC's long-term operating momentum.

Hon Hai (2317-TW) rose 9.15%, closing at 250.5. The Wall Street Journal reported that NVIDIA plans to provide OpenAI with up to $250 billion in financing guarantees, helping to lease SoftBank's under-construction mega data center in Ohio, USA. The total investment in AI infrastructure is expected to exceed $5,000 billion, becoming the largest AI data center project in the world. The market is optimistic about Hon Hai, as an important partner of OpenAI and SoftBank, which is expected to benefit from the significant growth in demand for AI servers, server racks, and data center hardware, becoming a major supplier. However, NVIDIA's simultaneous assumption of financing guarantees has also raised market concerns about the circular financing and credit risk of the AI industry. If future AI investment slows down, related companies may face greater financial pressure.

MediaTek (2454-TW) rose 9.89%, closing at 3555. The operating outlook for the second quarter of 2026 shows that while smartphone demand is weak, cloud AI ASIC business is taking off rapidly. It is expected that the third quarter will become a turning point for transformation, and TPU chip revenue is expected to see strong growth starting from the fourth quarter, accounting for more than half of the company's revenue by the end of 2027. Affected by the weak Chinese smartphone market, the third-quarter revenue is expected to decrease by about 5%, with a gross margin maintained at 45% to 46%. The market is focused on the upcoming earnings call, with key points including the 2027 TPU revenue guidance. Analysts expect MediaTek's AI ASIC market share to improve. If estimated based on the global billion-dollar market, long-term AI business will become the main growth engine. In addition, the progress of 2nm TPU mass production, CoWoS layout, and the competitive landscape of next-generation AI chips will also be market focuses.

On July 28, 2026, Lian Yi Guang (3441-TW) was forecasted to rise from 77.2 to 84, a 9% increase.

Lian Yi Guang benefits from the recovery of optical lens demand and the increase in the proportion of high-margin products, with continuous improvement in operating performance. The company's June revenue was 413.8 million NT dollars, up 73.63% year-on-year, with a single-month after-tax profit of 102.4 million NT dollars and an EPS of 0.26 NT dollars, turning from a loss to a profit compared to the same period last year. The first-quarter revenue was 1.13 billion NT dollars, up 24.51% year-on-year, with an EPS of 0.47 NT dollars. Profits are growing simultaneously. Looking ahead, Lian Yi Guang is actively laying out applications in automotive, drones, medical, robotics, and industrial inspection. Driven by the increase in orders from European optical customers, the management expects that the operating performance of each quarter this year will be better than the same period last year, and the revenue and profit in 2026 are expected to maintain double-digit growth. AI management and production optimization will continue to enhance competitiveness.

On July 28, 2026, Chialing (4976-TW) was forecasted to rise from 34.3 to 37.3, a 9% increase.

Chialing is an optical lens manufacturer, with products covering automotive cameras, security, industrial recognition,

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