【Top Gainers Review】What's the Next Mainstream After the Automation Industry Exhibition?

What will be the next mainstream after the automation industry exhibition?

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Let's take a look at today's Taiwan stock market!

The weighted index opened high but closed lower, down 210.47 points at 45,811.01, with a trading volume of NT$1.0645 trillion.

Analyzing today's institutional trading activities: foreign investors bought a net NT$45.351 billion, investment trusts bought NT$7.196 billion, and proprietary traders sold NT$1.661 billion. Combined, the three major institutions bought a net NT$50.886 billion. Foreign investors have now bought for five consecutive days, totaling NT$206.107 billion. Investment trusts shifted from net selling to net buying, while proprietary traders turned from net buying to net selling.

U.S. July Producer Price Index (PPI) remained flat year-on-year, with the annual growth rate dropping to 4.7%, below market expectations. Combined with the July Consumer Price Index (CPI) rising 3.4% year-on-year, inflation cooling signals are becoming clearer. Market concerns over the Federal Reserve's tightening policy have eased. All four major U.S. indices rose, with the S&P 500 hitting a new all-time high. The Nasdaq gained 0.81%, and the Philadelphia Semiconductor Index remained strong. Tech and AI-related sectors continue to attract capital. Memory stocks have become the market's focal point. U.S. stock SanDisk (SNDK-US) surged 13.67%, and Micron (MU-US) rose 4.23%, reinforcing market expectations for improved NAND supply-demand balance and rising memory prices, which also boosted related Taiwan stocks.

The weighted index opened high but closed lower, ending down 210.47 points at 45,811.01, with a trading volume of NT$1.0645 trillion. The market briefly rose to 46,402 in early trading. As the index approached previous highs, profit-taking pressure emerged, significantly narrowing gains. Market momentum shifted from broad index-led rallies to sector and stock rotation. Blue-chip stocks showed divergent trends, with large tech stocks mixed, reflecting cooling buying sentiment after consecutive gains. Short-term traders should avoid chasing highs and instead watch the 5-day moving average as a key support level.

Overall, the U.S. CPI and PPI showing milder inflation signals have reduced interest rate policy pressure. Combined with U.S. markets hitting new highs and institutional buying returning to Taiwan stocks, the medium-term bullish structure remains intact. However, with the index at high levels, short-term volatility may increase. Stock selection over market timing is advised. Focus on AI, memory, semiconductors, automation, and stocks with strong earnings. Investment strategy should emphasize buying on pullbacks and keeping strong performers while trimming weak ones. Maintain a cautiously optimistic, range-bound bullish outlook.

Among major stocks:

(2330-TW) TSMC fell 1.64% to NT$2,395. Q2 after-tax net profit exceeded NT$700 billion, with EPS at NT$27.25. The board approved a US$29.4 billion capital budget for continued investment in advanced processes, advanced packaging, and facility construction. A cash dividend of NT$7 per share was also announced, reflecting sustained profit growth, though capital expenditure is also rising. TSMC also announced a joint venture with Sony, combining TSMC's advanced processes with Sony's image sensing technology to develop next-generation smartphone image sensors, with mass production expected in 2029. As AI computing and smart recognition demand grow, image sensors are advancing to higher-end processes, potentially boosting demand for wafer-level packaging, testing, and optical components. Long-term growth momentum remains promising.

(2317-TW) Hon Hai (Foxconn) fell 0.95% to NT$259.5. Q2 after-tax net profit reached NT$59.974 billion, up 20% quarter-on-quarter and 35% year-on-year, a record high for the period. Quarterly EPS was NT$4.27, better than Q1's NT$3.56 and last year's NT$3.19. First-half net profit was NT$109.893 billion, up 27% year-on-year, with EPS at NT$7.84, showing strong performance. Looking ahead to Q3 and full-year, Hon Hai expects significant sequential and strong year-on-year growth, maintaining a robust outlook, driven by rising AI server demand. The company will continue expanding global AI production capacity, offering complete system solutions from components, liquid cooling, MDCs to data centers. Long-term growth momentum remains strong.

(2454-TW) MediaTek fell 0.36% to NT$4,210. July consolidated revenue was NT$48.474 billion, down over 10% month-on-month but still a record high for July, up 12.1% year-on-year. Revenue for the first seven months reached NT$349.808 billion, up 0.8% year-on-year. The company expects Q3 revenue to grow up to 5% sequentially. Looking ahead, flagship smartphone chip volume growth is expected to offset weaker performance in other products. Smart device platform revenue is forecast to grow in the mid-to-high single digits. More notably, MediaTek is collaborating with a major U.S. CSP to develop AI accelerators, with mass production expected in Q4. Data center revenue is expected to exceed US$2 billion this year and accelerate further next year. AI and ASIC will be key long-term growth drivers.

Driven by expanding AI demand and a recovering memory industry, Taiwan stock market funds continue to focus on AI servers, memory, and computer equipment. Opportunities exist across the supply chain, from upstream memory chips to downstream server assembly. Notable companies include:

(5351-TW) Etron, benefiting from AI and high-bandwidth memory applications, with market attention on its memory product strategy;

(3231-TW) Wistron, deeply embedded in the AI server and cloud data center supply chain, benefiting from continued capital spending growth by major CSPs;

(2356-TW) Inventec, expanding its presence in AI servers, enterprise servers, and cloud computing. These three companies represent key links in the memory, AI server, and electronics manufacturing supply chains. In the current market environment focused on AI and memory, their fundamentals and stock performance warrant close observation.

Individual stocks: (2399-TW) Biostar has been adjusting its product mix, increasing revenue from industrial PCs and edge computing, and expanding into smart manufacturing, smart cities, and AI edge computing applications. Through its investment in YuCheng Semiconductor, the company is entering co-packaged optics and server optical communications. If demand for AI servers and high-speed computing continues, these initiatives have long-term potential. With the upcoming International Automation Industry Exhibition, robotics, industrial automation, and AI applications may regain market attention, making related概念股 potential short-term rotation targets.

2026.7.31 Stock Market Futures Preview: (2356-TW) Inventec

(2356-TW) Inventec: NT$61.2 → NT$73.5, +20% after preview.

Inventec's Q2 after-tax net profit was NT$3.895 billion, up 60% quarter-on-quarter and 78% year-on-year, exceeding market expectations, driven by strong growth in server and notebook businesses. However, gross margin declined from 5.1% in Q1 to 4.2% due to rising component costs. For Q3, revenue may remain flat due to tight supply of key components like memory, CPUs, and PCBs, and post-advance-purchase shipment declines in notebooks. However, server business is expected to support margin improvement. Long-term growth in AI servers, ASICs, and general servers is positive. Profit forecasts for 2026 and 2027 have been raised by 9% and 16% respectively due to capacity expansion.

2026.7.31 Stock Market Futures Preview: (3231-TW) Wistron

(3231-TW) Wistron: NT$172 → NT$206, +19% after preview.

Wistron's July revenue reached NT$308.2 billion, up 61% year-on-year, 30% above expectations, driven by strong demand for AI server racks. Enterprise and CSP customers continue to expand, offsetting product transition impacts. Q2 revenue was NT$895.4 billion, up 62% year-on-year, net profit NT$14.8 billion, up 128% year-on-year, with a 5.7% gross margin, better than expected. Looking ahead, next-generation GPU AI servers will enter mass production in Q4. Combined with customer expansion, specification upgrades, and global capacity deployment, ASP and revenue are expected to rise. H2 2026 revenue is forecast to grow 28% over H1. Financial institutions have revised upward 2026–2028 profit forecasts. Continued AI server volume ramp-up remains the primary growth driver.

2026.7.22 Stock Market Futures Preview: (5351-TW) Etron

(5351-TW) Etron: NT$61.1 → NT$138, +125% after preview.

Etron's July consolidated revenue reached NT$2.125 billion, up 11.7% month-on-month and 590.83% year-on-year, marking the fourth consecutive month of record highs.