Who Benefits from the AI Capital Inflow? 9 Key Stocks in CPO, Memory, and Cooling to Watch

These past few days, everyone has been asking the same question: "With foreign investors holding nearly 90,000 futures short positions, is Taiwan's stock market rally over? Should I rush to sell and flee?" Having lived through the 2008 financial crisis and the 2020 pandemic market crash, many instinctively react to "record-high foreign short positions" by thinking, "Should I exit first?"

But those who truly profit in the market are often not the fastest to react, but those who best distinguish between "hedging" and "bearish outlook."

The 90,000 foreign short contracts do not necessarily mean a bearish view on Taiwan stocks.

Many people see "90,000 short contracts" and immediately think of the 2008 financial crisis, assuming foreign investors are preparing for a major move. But market mechanics are far more complex than that. Relying solely on a single number can blind you to the主力's sleight of hand.

These 90,000 short contracts are primarily for hedging needs from "USD-JPY carry trades" and arbitrage locking due to futures-spot price spreads. Simply put, recent changes in the U.S.-Japan interest rate differential, combined with market adjustments in AI valuations, have forced foreign investors to hedge their positions in Asian equities. This is like buying insurance before traveling abroad—these short positions are insurance to protect their large cash equity holdings, not a simple bet on a Taiwan market crash.

To judge real market risk, watch the "Three Risk Indicators":

Dollar Index: Has fallen below the 100 level, indicating significantly eased inflation pressure. Crude Oil Price: Sharply declined, weakening expectations of further Fed rate hikes. VIX Fear Index: The most critical indicator hasn't breached the 20 red-alert level and remains stable around 15.8.

When all three risk indicators show no red lights, foreign short positions are merely standard defensive or arbitrage moves—not a preview of a major crash!

Nine Growth Stocks to Watch in Q3

Winbond (2344-TW)

Benefiting from improved memory pricing and recovering AI demand, with product lines covering niche markets like NOR Flash and DRAM. Cost controls are gradually improving, offering strong profit elasticity during economic upturns.

Nanya Technology (2408-TW)

Improving DDR4 and DDR5 prices help gross margins rebound. With proprietary DRAM technology and large-scale production capacity, it's one of the few Taiwanese firms with full memory manufacturing capabilities, offering significant profit recovery potential during economic recovery.

United Epitaxy (3081-TW)

A long-time specialist in indium phosphide laser chips, serving as a core supplier for high-speed optical communications. Benefits from CPO and the 800G, 1.6T upgrade trend, with high technical barriers and global competitive advantages.

Win Semiconductors (6442-TW)

Core products include high-speed fiber optic components and connectors, already integrated into international data center supply chains. Rising AI-driven high-speed transmission demand drives product mix upgrades and profit growth.

IET-KY (4971-TW)

Specializes in compound semiconductor MBE epitaxy technology, with applications in optical communications, satellites, and defense. High technical barriers and strong customization capabilities give it pricing power in niche markets.

Global Unichip (4991-TW)

Provides gallium arsenide and indium phosphide wafer foundry services, benefiting from optical communications and AI high-speed transmission demand. Operations have rebounded from lows, with increasing high-value-added product mix.

Holtek Semiconductor (4979-TW)

Long focused on high-speed optical transceiver modules, benefiting from AI data center upgrades. Deepening cooperation with international clients and rising capacity utilization drive operational growth.

Acerinox (3017-TW)

Leader in AI server cooling, with leading liquid cooling and vapor chamber technologies. As GPU power consumption rises, demand for high-end cooling grows rapidly, forming a long-term competitive moat.

Jien (3653-TW)

Strong in vapor chambers, heat sinks, and lead frames, with high-precision manufacturing processes. Long-term benefits from AI servers and high-performance computing demand, ensuring sustained profit growth.

Conclusion: While the 90,000 foreign short contracts are worth watching, what truly determines Taiwan's market direction is corporate earnings, global capital flows, and the expanding capital expenditures in the AI industry.

If your holdings are weak stocks without fundamentals, use the rebound to rotate into stronger positions—like the nine mentioned above, in memory, cooling, and CPO sectors, which possess long-term growth momentum.

For more industry trend reports + real-time market updates → Join Jiangjiang's Line@:

https://lin.ee/vTaRqlQ

Jiangjiang's daily market review videos → Packed with insights, highly authoritative and engaging!

Committed to producing high-quality content—be sure to watch until the end!

And please 【Subscribe + Like + Share to help your friends】

Source: Moore Investment Advisors – Analyst Jason Chiang

The securities recommended and analyzed by our company have no improper financial interests. Past performance does not guarantee future profits. Investors should make independent judgments, conduct careful evaluations, and assume investment risks on their own.