Market Stagnation Reveals Divergence! Are Institutions Quietly 'Selling Old Leaders, Moving into New Mainstream'? The Key to AI Supply Chain Rotation!

After a sharp rebound, Taiwan's stock market has entered a sideways consolidation phase. The market stands at a crossroads of sector divergence. With the short-covering rally concluding after chip cleansing, institutional investors have already quietly adjusted their capital allocation. Uncover the underlying industrial logic behind the 'sell old, buy new' capital rotation and precisely position yourself in the core mainstream poised to regain momentum!

〈Rebound Enters Consolidation Phase: The Next Stage Hinges on Sector Divergence〉

Today, the weighted index dipped to 44,652 points before buyers stepped in, closing up 191 points at 45,120. The GreTai market similarly recovered lost ground after intraday volatility. This trajectory closely matches the initial rebound path outlined by Analyst Chen Zhi-Lin on his program. After the chip cleanup at the start of the month, the rapid rebound driven by short-covering has temporarily ended, and the market has shifted into sideways consolidation. The previous phase saw broad-based recovery after oversold conditions; now, the market begins selecting by industry, hierarchy, and fundamentals. CCL, PCB, and CPO have undergone short-term deferrals, but their long-term development trajectories remain unchanged. Power architecture has reverted to a more pragmatic 400VDC-first approach, as market expectations for high-end specifications have converged from earlier over-optimism. Valuations have also completed a round of correction. As long as follow-up financing maintains a moderate and reasonable increase, there's no need for excessive concern about the market. However, if short-term speculative capital rapidly expands, vigilance against another deleveraging-style shock is warranted.

〈ASICs Don't Rise Together: Capital Is Re-selecting Stocks Based on Industrial Logic〉

Today's ASIC group is a perfect example. Wisol-KY (3661-TW) and Faraday (3443-TW) both strengthened in early trading, but by the close, Wisol-KY's gains had narrowed to about 4%, while Faraday maintained its strength. On the surface, both are ASIC companies, but in reality, they reflect different industrial positions and capital preferences.

Longtime followers of our industrial tracking logic know that we previously took profits on Wisol-KY at relatively high levels and rotated capital into Faraday. This wasn't stock price speculation—it was driven by a shift in industrial logic. From the direction of this year's COMPUTEX Taipei to the rising prominence of the AMD supply chain, CPU architecture has become a key theme for the next phase. Wisol-KY previously benefited from expectations around Amazon's ASIC project, with some growth already priced into its valuation. Hence, its recent stock performance has diverged from Faraday's. Focusing only on themes risks chasing performance, but understanding the underlying industrial logic allows foresight into where capital will move next.

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〈Advanced Packaging Visibility Rises: Operations Must Return to Discipline〉

As GPU, ASIC, and server CPU platforms continue to upgrade, the area and layer count required for high-end substrates are increasing simultaneously. The supply-demand structure hasn't changed despite short-term stock price volatility. Recent discussions around advanced packaging capacity expansion continue to gain traction, further elevating the visibility of related equipment and material supply chains, including companies like Chang Guang (7795-TW) that benefit from capital expenditure expansion rhythms.

This is no longer the easiest phase of broad-based rebound. Market operation difficulty is indeed higher than in the previous stage, and direction confirmation takes time. At such times, disciplined capital management becomes even more critical. Maintain a left-side, low-positioning discipline, focusing on core sectors protected by long-term industrial trends. We invite investors to download the [Chen Zhi-Lin Analyst APP], where real-time information is shared第一时间. Use data to grasp market rhythm, and let the weekly updated Suspicious Margin Trading List help you avoid risks and lock in opportunities.

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Source: Chen Zhi-Lin Analyst / Kaixu Investment Advisory

Regarding individual securities recommended by our company: There are 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.