Top 4 Powerhouses of the Third Quarter Revealed! Where is the Next Surge in Stocks?

Recently, many investors have had the same feeling. After seeing the Taiwanese stock market surge by 5,000 points in just a few trading days, they wanted to pour all their funds into it. But as soon as the index corrected by a few hundred points, they started to doubt: 'Is the trend over? Is it going to crash again?' If you feel the same way, I want to tell you one thing first: 'A true bull market is never a straight line upwards, but rather a big rise, a small correction, and then a new high.' The truly scary thing in the stock market is not the correction, but selling the stocks that will rise significantly in the future during the correction. Understanding the flow of funds is a hundred times more important than guessing daily ups and downs. If you compare this trend to a marathon, the initial 5,000 points are just the starting gun. Now, we are entering the stage that truly tests investors' patience and discipline. Currently, international capital is undergoing a very subtle and significant transformation: First, U.S. Treasury yields are starting to decline. When yields were high, global capital was more willing to stay in the bond market, enjoying relatively stable returns. But as yields gradually decline, the market begins to increase its allocation to riskier assets like stocks. Second, the U.S. dollar is weakening, and Asian currencies are strengthening in unison, with the New Taiwan dollar performing relatively well. Exchange rate changes represent not just numbers, but that international capital is being reallocated. When the Taiwan dollar appreciates, it usually means an increase in foreign capital inflows, which also boosts foreign investors' willingness to replenish Taiwanese stocks. Third, foreign buying has returned to the electronics sector. Recently, market trading volume has increased, and electronics heavyweights have once again become the main players in the market. The AI supply chain is again playing a leading role, indicating that capital is not leaving the market but is beginning to concentrate on industries with real growth potential. Where are the diamonds? Four key groups are precisely analyzed. Since we know that capital is flowing back in, which 'diamonds' with real gold and silver profit potential are worth bending down to pick up at this golden cross point? Below, I have locked in four key groups with fundamental and niche advantages: 1. AI Supply Chain: A Real Super Cycle. AI is not a fleeting bubble but a super cycle that is accelerating investment returns, and this mega-trend is expected to continue until 2030. TSMC (2330-TW): As the ultimate driver of global AI chips, its CoWoS advanced process capacity is continuously in short supply. Benefiting from the huge and continuous capital expenditures of global cloud service providers (CSPs), TSMC's profitability visibility is extremely high, serving as the cornerstone of the bull market. Largan Precision (3711-TW): The global semiconductor packaging and testing leader, and an indispensable hub for advanced packaging (CoWoS and Fan-out). As the revenue target for advanced packaging approaches doubling, the company is investing heavily in expanding capacity, strongly locking in the massive packaging demand under the surge in AI computing power. 2. CPO Silicon Photonics: A 10x Speed Transmission Revolution. When AI chip performance dramatically increases, traditional copper wire transmission has reached its physical limit and must be replaced with 'silicon photonics (CPO).' In addition, the effect of U.S. customers' de-Chinaization transfer orders makes Taiwanese manufacturers the biggest winners. Lextar (3081-TW): The core indicator of CPO optical communications. Benefiting from the certification and mass production of new-generation products, its revenue has shown explosive growth of 1.7 times compared to the same period last year, pulling out multiple limit-ups, becoming the leading stock of this CPO rally. Amec (4979-TW): A core player in the second wave of the CPO supply chain, benefiting from the U.S. transfer order effect and product specification upgrades. The company has a unique niche in the advanced packaging and optical communication module sectors, and its revenue is expected to welcome the main upward phase with the start of mass production in the second half of the year. Panchang (6830-TW): The dominant platform for AI and silicon photonics chip R&D analysis. Its monthly revenue has hit a historical high, with nearly 90% coming from AI and silicon photonics. It has already been allocated a dedicated area by U.S. chip giants. Holding a global patent moat for optical loss detection, its gross margin is rebounding to 30%-40%, and its performance is expected to explode in the next two years. 3. Memory: Evaluation Restoration After Negative News. Memory was heavily hit recently due to deleveraging, but this has created a historically low P/E ratio. Fundamentally, CSP operators are willing to offer higher prices to secure DDR4 capacity, and the second wave of evaluation restoration is just beginning. Nanya Technology (2408-TW): A DRAM benchmark company. Its stock price was overcorrected, bringing its P/E ratio to a historically low level. With the market recovery and rising prices for high-end DDR4 and DDR5, the company's fundamental earnings expectations have been significantly upgraded, with strong evaluation restoration elasticity. Wistron (2344-TW): Benefiting from cloud and edge AI demand, and with excellent cost control capabilities, it demonstrates 'three greens and three rises' financial strength. In the recovery of niche memory shipments, the speed of profit explosion during the traditional peak season in the second half of the year is worth looking forward to. 4. Cooling Group: The Cooling Guardians of AI's Heart. AI servers have extremely high power consumption, and if cooling cannot keep up, chips will slow down or even burn out. 'No cooling, no AI' is a market iron law. Cooling indicator stocks have completed their consolidation and are now surging one after another, declaring the official start of the main upward phase. Chialung (3017-TW): The dominant player in server cooling solutions. It has a complete technological niche from 3D VC to water cooling, benefiting from the significant increase in AI chip power consumption. Its order visibility extends to next year, with significant potential for profit growth. Hengzhen (3653-TW): A major manufacturer of heat spreaders, with absolute advantages in advanced packaging cooling components. With the explosive growth of AI chip shipments, Hengzhen has successfully built a bottom and created new highs, demonstrating its irreplaceability in cooling metal parts. Fushida (6805-TW): The king of quick-disconnect (QD) and slide rail for server water cooling. Benefiting from the significant increase in QD usage per GB/LPU cabinet, its server revenue accounts for more than 60%, with a gross margin exceeding 30% in 2026, and an EPS compound annual growth rate (CAGR) of over 60%, with extremely strong growth momentum. For more industry trend reports + intraday information → please join Jiangjiang Line@: https://lin.ee/vTaRqlQ Jiangjiang's daily market commentary videos → packed with gold content, the program is too wonderful + too authoritative! We are committed to producing high-quality programs, so please watch until the end! And [subscribe + like + share to help friends] Article source: Moore Investment Consulting - Analyst Jiang Guozhong The individual securities recommended by our company have no improper financial interest. Past performance does not guarantee future profits. Investors should make independent judgments, evaluate carefully, and bear investment risks.