【Top Gainers in Taiwan Stock Market】【United Microelectronics】⊕⊕, 【Largan】+27%! NVIDIA Announces CPO Mass Production, Reveals List of Leading AI-Related Stocks

[United Microelectronics] ⊕⊕, [Largan Precision] +27%! NVIDIA Announces CPO Mass Production, Reveals List of Leading AI-Related Stocks?!

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Now, let's take a look at today's Taiwan stock market!

The weighted index opened higher and continued to rise, closing up 1,250.94 points at 44,611.60, with a trading volume of NT$1.144163 trillion.

Analyzing today's institutional investor activity, foreign investors bought a net NT$90.308 billion, investment trusts bought a net NT$8.641 billion, and proprietary traders bought a net NT$1.456 billion. The three major institutional investors collectively bought a net NT$100.406 billion. Notably, foreign investors and proprietary traders shifted from net sellers to net buyers, while investment trusts extended their buying streak to 31 consecutive days, accumulating a net purchase of NT$357.277 billion.

U.S. corporate earnings continue to beat expectations. Combined with market expectations of easing geopolitical tensions in the Middle East—reports suggest progress in U.S.-Iran negotiations and the potential restoration of normal passage through the Strait of Hormuz—international oil prices plunged over 5%, effectively alleviating market concerns about inflation and corporate costs. This boosted U.S. stocks, which closed strongly on Tuesday. The Dow Jones Industrial Average surged 907.47 points (1.71%), and the S&P 500 rose 1.79%, both setting new record highs. The Nasdaq jumped 2.59%, and the Philadelphia Semiconductor Index soared 6.55%, indicating renewed capital inflow into tech and AI sectors and a clear rise in risk appetite. Market focus centered on AI-related stocks. (PLTR-US) Palantir reported earnings exceeding market expectations, benefiting from growing AI demand from both government and enterprises, causing its stock to surge 29%—its largest single-day gain in over two years—driving strength across AI software and cloud computing stocks. (MU-US) Micron, benefiting from expanding HBM and AI memory demand, also saw strong gains. (MRVL-US) Marvell, driven by rising demand for AI high-speed networking chips, attracted significant investor interest. Additionally, (NVDA-US) NVIDIA continues to benefit from the global AI data center investment boom, while (AVGO-US) Broadcom and (AMD-US) AMD, among other AI chip and high-performance computing stocks, also advanced. With over 80% of S&P 500 companies reporting better-than-expected earnings, the bullish trend in U.S. markets continues.

The strong U.S. market performance has boosted confidence in Asian markets. On Wednesday, buoyed by international markets, Taiwan's stock market gapped up at the open. Electronics, finance, and traditional industries all rose, with the weighted index reclaiming the quarterly moving average and the 44,000-point psychological level. Market buying interest clearly returned. The index opened high and continued to climb, closing up 1,250.94 points at 44,611.60, with a volume of NT$1.144163 trillion. The market saw both price and volume expansion, stabilizing above all key moving averages. Foreign investors turned net buyers, and investment trusts extended their buying streak to 31 days, creating a favorable technical and institutional backdrop.

Overall, record highs in U.S. markets and strong performance in AI-related stocks have helped boost short-term investor sentiment in Taiwan. However, investors should continue monitoring corporate earnings, the Federal Reserve's future monetary policy, and U.S. non-farm payroll data.

Among large-cap stocks:

(2330-TW) TSMC rose 3.66% to NT$2,405. Its Q2 gross margin and EPS both exceeded market expectations. The company raised its 2026 USD revenue growth forecast to over 40% and increased its capital expenditure to between $60 billion and $64 billion, highlighting sustained strong AI demand. AI accelerators and Agentic AI are expected to jointly drive CPU and high-performance computing demand. Advanced process and packaging capacities remain in short supply. The A14 process is scheduled for trial production in 2027 and mass production in 2028, with ongoing development of A13 and A12 technologies. Analysts believe AI-driven volume and pricing improvements will lead to earnings growth exceeding market expectations over the next three years, maintaining an optimistic medium- to long-term outlook.

(2317-TW) Hon Hai (Foxconn) rose 3.40% to NT$258.5. The company is actively expanding into quantum computing, deepening R&D efforts in recent years. It established a Quantum Computing Research Institute in 2020, launched an ion-trap laboratory in 2023, and plans to complete a programmable quantum computer prototype with 5 to 10 qubits by 2027. With IBM announcing entry into the 'quantum advantage' era, quantum computing is gradually moving toward commercialization, creating new growth opportunities for the supply chain. Leveraging its massive manufacturing capabilities and existing AI server and high-performance computing infrastructure, Hon Hai is well-positioned to integrate quantum technology into new business ventures. As global quantum computing investment continues to grow, its medium- to long-term growth momentum warrants close attention.

(2454-TW) MediaTek rose 3.49% to NT$4,000. During its latest earnings call, the company released multiple positive updates, raising its full-year outlook and strengthening market confidence in its AI strategy. It upgraded its 2026 USD revenue growth forecast from mid-to-high single digits to high single digits and expects data center revenue to exceed $2 billion, surpassing prior estimates. Additionally, MediaTek anticipates continued expansion in AI ASIC demand and projects the 2027 data center serviceable market to reach $80 billion, raising its market share target from 10%-15% to 15%-20%. This reflects its aggressive push into the AI chip market. As high-performance computing and cloud demand grow, this segment is expected to become a key growth engine.

Among other notable stocks, (3605-TW) Hon Hai Precision (HongJi) benefited from rapidly rising AI high-speed transmission demand. The company announced that its first batch of high-speed cables for ASIC clients began shipping in August, making it one of the few suppliers with full MIT (Made in Taiwan) high-speed cable production capabilities. HongJi is expected to secure around 30% of initial supply and has been designated a strategic high-speed cable partner by international clients. As more ASIC platforms are introduced, the penetration rate of high-speed cable products is expected to increase. Given that high-speed cables command significantly higher prices than traditional high-speed connectors, this will improve product mix and gross margins. Revenue growth momentum is expected to strengthen in the second half, and by 2027, high-speed cable products could become the most important growth engine for the company's AI business.

In the hot stock segment, market funds continue to focus on AI and high-end computing themes. AI computing infrastructure has reached a key milestone: (NVDA-US) NVIDIA's Senior Vice President Gilad Shainer officially announced at a technical forum on August 3 that Co-Packaged Optics (CPO) technology has officially entered mass production. The first batch of CPO switches has been delivered to customers and deployed internally. Mass deployment in global AI Factories is expected to begin in the second half of 2026. NVIDIA stated that as AI model sizes rapidly expand, the bandwidth required for future data center 'Scale-up' architectures will exceed traditional 'Scale-out' by more than tenfold. CPO will become the core technology for next-generation high-speed transmission, effectively resolving prior market concerns about yield issues and production delays.

Meanwhile, (MSFT-US) Microsoft, (GOOGL-US) Alphabet, (AMZN-US) Amazon, and (META-US) Meta all raised their capital expenditure forecasts in recent earnings reports. Market estimates suggest the four major cloud service providers will spend between $720 billion and $745 billion in annual capital expenditures. AI data center construction demand is expected to continue through 2028, creating a long-term growth trend in AI infrastructure. With NVIDIA launching CPO mass production and North American CSPs continuing to expand investments, a 'Double Play' effect of simultaneous supply and demand explosion is taking shape. According to TrendForce, the global CPO/NPO market is projected to exceed $39 billion by 2030. Taiwan's supply chain, with strengths in silicon photonics, optical communications, advanced packaging, and high-speed switches—including (2330-TW) TSMC, (3711-TW) ASE Holding, (3081-TW) United Microelectronics, (3363-TW) Sampo, (3163-TW) Powertech, and (2345-TW) Accton—is expected to benefit first. As CPO switches begin volume shipments in the second half, related stocks are expected to transition from theme-driven to fundamentals-driven, with revenue and profit growth momentum warranting continued attention.

Market Futures Pre-announcement: (3081-TW) United Microelectronics on August 3, 2026

(3081-TW) United Microelectronics: NT$1,790 → NT$2,160, +20% after pre-announcement

United Microelectronics benefits from strong demand for 800G/1.6T silicon photonics optical modules and improved supply of Indium Phosphide (InP) substrates.