Taiwan Stock Market Surges with TWD 1.14 Trillion Volume, Leaving Upper Shadow – Is Profit-Taking Emerging? Amid Volatility, 'This Industry' Offers Phased Entry Opportunities!

The Taiwan stock market surged with a massive trading volume of TWD 1.14 trillion, leaving an upper shadow, signaling potential profit-taking. With U.S. equities reaching new highs and macroeconomic variables calming, the main index is undergoing volatile consolidation between the monthly and quarterly moving averages—leading to healthier share distribution. This sets the stage for core industries with solid earnings and policy tailwinds to become prime targets for phased accumulation during the upcoming revenue rotation phase.

<Taiwan Stocks Close Higher on Rising Volume – Healthy Turnover Between Monthly and Quarterly Lines>

Taiwan's stock market opened higher today and maintained strength throughout the session. The weighted index closed at 44,611 points, up 1,250 points, with trading value expanding to approximately TWD 1.14 trillion—consistently above the monthly average volume. Led by TSMC (2330-TW), the index reclaimed the monthly line, quarterly line, and the 44,000-point level. A volume-backed green candle clearly indicates active market absorption, but we also observe overhang profit-taking and short-term position liquidation gradually emerging. Today’s OTC index left an upper shadow, and as Professor Zhi-Lin previously emphasized repeatedly, the monthly line trend remains relatively steeply downward, making it inherently difficult for the index to break through in one go. At this stage, moderate oscillation between the monthly and quarterly lines—aligned with the upcoming two-week base comparison—allows for healthy share turnover and gradual repair of the moving average structure, ultimately supporting a more stable market trajectory.

<U.S. Markets Hit New Highs, Earnings Provide Support – Pullbacks Offer Core Industry Positioning Opportunities>

On August 4, both the Dow Jones Industrial Average and the S&P 500 Index set new closing highs. Crude oil prices retreated as U.S.-Iran negotiations showed signs of progress, clearly restoring market risk appetite. Recently released Q2 earnings reports—across PCBs, server ODMs, and mature-process semiconductors—have shown solid operational data and positive outlooks for the second half. Therefore, any pullback following a sharp rally in the Taiwan market doesn’t warrant excessive concern. As long as corporate earnings don’t deteriorate and industry trends remain intact, such pullbacks represent rational opportunities to accumulate core industries in phases. What investors should truly avoid is chasing high after seeing broad market gains without first verifying individual stocks’ revenue, profitability, and ownership structure.

<Download the [Chen Zhilin Analyst App] for Free to Access Real-Time Market Intelligence and Credit Margin Watchlists>

Stock-picking membership via the app has limited monthly enrollment—spots are scarce. Each week, we provide the latest 'Credit Margin Risk Watchlist.' Download the [Chen Zhilin Analyst App] now via the link: https://lihi.cc/zwrii

<Optical Communications and CPO Remain Strong – Next Phase Shifts Toward Revenue and Earnings Validation>

Recently, the U.S. has signaled potential restrictions on China’s optical communications supply chain. The market anticipates this could impact Chinese-made optical transceivers entering U.S. data centers. Although non-Chinese supply chain capacity was already tight, actual enforcement of bans may take time. Nevertheless, the policy signal has clearly boosted sentiment among U.S. and Taiwan-based optical communications players. Huaguan Light (4979-TW) opened limit-up today, continuing the sector’s strong performance. Guangsheng (6442-TW) has rebounded nearly 50% from recent lows. After such a price-level increase, short-term consolidation represents reasonable turnover. Largan (3008-TW), which entered the CPO field, surged again today on strong volume. Advanced Optoworks (3362-TW), listed under special trading rules, saw mild consolidation. Going forward, the relative valuation and catch-up potential between Largan and Advanced Optoworks remain worth watching.

Previously highlighted core holdings of active ETFs—including IC design leader Creativity (3443-TW), thermal solutions leader Chic-Fil-A (3017-TW), and ABF substrate leader Unimicron (3037-TW)—also continued their strong momentum today, reflecting that capital remains concentrated in the most essential and operationally transparent segments of the AI industry. Themes can drive prices temporarily, but for sustained and stable performance, fundamentals—earnings numbers and institutional holding stability—are ultimately decisive. We invite investors to download the [Chen Zhilin Analyst App], where real-time updates are shared instantly. Use data to master timing, and rely on our weekly updated credit margin watchlists to avoid risks and lock in opportunities.

Latest Video (Click title above to view on YouTube for better quality)

<Apply Now to Experience Chen Zhilin Analyst Membership Services>

Loyal fans, please complete the application form first. Weekly access is limited to selected trading lists, real-time price-alert notifications, and immediate strategy updates. In volatile markets, rational analysis and data-driven judgment are key. Apply now to follow professional guidance: https://lihi.cc/RFzlE

Hotline: 02-2653-8299, step into systematic stock trading immediately.

Source: Chen Zhilin Analyst / Kaixu Investment Consulting

Regarding individual securities recommended or analyzed by our company, there are no improper financial interests involved. Past performance does not guarantee future profits. Investors should make independent judgments, conduct careful evaluations, and assume investment risks accordingly.