TSMC and Foxconn No Longer Top Picks? Cold Jobs Data Triggers AI Short Squeeze! 10 Potential 100% Gainers Revealed

Last Friday, the U.S. released surprisingly weak non-farm payroll data, with only 80,000 new jobs added—far below expectations. Yet, this 'bad news' is seen as fantastic 'super good news' on Wall Street. Do you understand this counterintuitive move by Wall Street?

The reason is simple: the market is no longer focused on 'how easy it is to find jobs in the U.S.,' but on the sharply reduced probability of rate hikes this year. Suddenly, the market realizes that upward pressure on interest rates isn’t as strong as expected. With lower funding costs, the first reaction is to chase high-growth, rate-sensitive tech and AI assets. As a result, NVIDIA, Micron, AI software, and semiconductor stocks are being pushed higher by fresh capital.

Technical analysis speaks: Can the Taiwan stock index challenge 48,000 points?

Looking at Taiwan’s market, July saw extreme volatility—a setup where retail investors often make the classic mistake of 'buying high and selling low.' They panic when prices fall and chase when they rise. From a technical perspective, what matters most isn’t how many hundreds of points the market gains in a day, but whether the monthly moving average line can shift from downward to flat, and then turn upward.

The key evidence lies in the Dow Jones and S&P 500. Both have already led the Nasdaq and the Philadelphia Semiconductor Index to new all-time highs, and the MACD indicator on the monthly chart shows no divergence. This implies that the Nasdaq, the Philly Semi, and Taiwan’s market—yet to hit new highs—will inevitably follow and set new records. We can boldly predict that Taiwan’s market will overcome each hurdle and target 48,000 points. But remember: 48,000 is a 'scenario target,' not a guaranteed number.

As the saying goes: 'Ducks know first when spring river water warms.' True bull markets always begin with concentrated positioning!

Stock selection: Many investors are anxious: 'I missed the first wave—am I too late now?' My answer: 'Not necessarily.' Because before a bull market truly ends, there’s usually more than one wave. But the strategy for the second wave differs completely from the first.

The first wave can be driven by broad-based rebounds; in the second wave, the market starts picking companies. Who has real orders? Whose revenue is accelerating? Whose EPS can truly grow? Which stocks are seeing increased holdings by foreign institutions, trust funds, and major investors? These are the key questions going forward. True bull markets always begin with concentrated positioning. Focus on the moves of major players, foreign investors, and trust funds: when large capital flows align, we can easily unlock the profit code.

The following 10 stocks are carefully selected—clear AI trends, sustained future revenue growth, explosive EPS potential, and signs of concentrated positioning.

Foreign investors locking in: Strong leaders

Zhi Shang (8112-TW): As Taiwan’s largest Samsung semiconductor distributor, Zhi Shang benefits from surging demand for AI server high-bandwidth memory (HBM) and SSDs. Riding the memory supercycle, its distribution niche is strong, with robust revenue and profit growth, earning it strong foreign investor accumulation.

Solomon (2359-TW): A partner personally endorsed by NVIDIA CEO Jensen Huang, Solomon specializes in AI 3D vision and robotics development. Benefiting from the wave of smart manufacturing and automation, its industrial AI software niche is solid, with high EPS growth potential.

Lian Jun (3450-TW): Lian Jun is positioned in CPO silicon photonics packaging. U.S. clients are excluding Chinese components for data security, giving Lian Jun strong order-transfer advantages. With high-end capacity ramping up in the second half, revenue and profit growth are remarkable, attracting active foreign investor accumulation.

Trust funds locking in: Swing heavyweights

Strong-M (2481-TW): Diode leader Strong-M is aggressively entering high-margin markets like automotive and industrial control. Benefiting from AI server power management demand for medium-high voltage power components, its profit structure has significantly improved, with strong EPS growth, earning trust fund accumulation.

Zhen Ding-KY (4958-TW): Global PCB leader Zhen Ding-KY benefits not only from Apple’s new product launch but also from AI server boards and high-end ABF substrates. Rising utilization rates and explosive high-speed transmission demand make its second-half profits promising, attracting trust fund accumulation.

Major investors locking in: Heavy buying by insiders

Lian Ya (3081-TW): A key player in silicon photonics laser chips, Lian Ya has repeatedly set new revenue highs. The recent U.S. IPO of a photocommunications ETF (LYTE-US) signals the takeoff of the optical interconnect era, with bandwidth and performance increasing tenfold. Major investors are aggressively accumulating shares.

Ming Li (2464-TW): Smart logistics leader Ming Li has entered automation equipment for CoWoS advanced packaging. Benefiting from massive capacity expansions by TSMC (2330-TW) and other giants, semiconductor automation equipment shipments are entering a golden era. Major investor positions are concentrated at low levels, with strong fundamental growth.

Team Group (4967-TW): Memory module giant Team Group benefits from specification upgrades in AI PCs and AI smartphones. NVIDIA’s recent HBM specification downgrade was merely a supply-chain capacity adjustment (a real-world engineering compromise due to severe shortages), and Team Group’s low-cost inventory gives it strong upside potential.

Hwa Shing (4979-TW): Hwa Shing’s July revenue hit a record high, marking CPO’s entry into mass production and revenue validation. With close cooperation with major U.S. firms, its high-frequency transmission upgrade niche is hard to replace. Major investors are aggressively accumulating, giving the stock strong explosive upside potential.

F-Tech (6830-TW): Materials analysis leader F-Tech holds a solid position in advanced process and silicon photonics testing. As semiconductor processes advance, testing demand grows, and high technical barriers ensure ultra-high margins. Its future EPS growth potential is strong, making it a core high-flyer locked in by major investors.