Don't Panic Over Rising Yields! Taiwan Stocks Pull Back to Jump Higher—AI Blue-Chip Stocks with 'Two Key Advantages' Now Present a Buying Opportunity!

The 30-year U.S. Treasury yield has reached its highest level since 2007. U.S. tech and semiconductor stocks, being highly sensitive to interest rates, led the market decline on August 18.

U.S. CPI and PPI data for July both slowed, and expectations for a Fed rate hike in September have declined. Although Middle East geopolitical tensions persist, WTI and Brent crude oil prices remain well below their April-May highs. So why is the U.S. bond yield rising?

The main reason lies in reduced traditional demand for long-term U.S. Treasuries, while U.S. government and corporate borrowing needs have surged, creating a supply-demand imbalance that pushes yields higher. The joint U.S.-Japan intervention in the yen was partly to prevent the Bank of Japan from selling U.S. bonds and further driving up yields.

According to Bank of America data, the five largest cloud infrastructure companies are expected to issue $121 billion in debt in 2025—up from an average of $28 billion annually over the past five years. Total corporate and government bond issuance in the U.S. is projected to reach $400 billion this year, making it the primary driver of rising Treasury yields.

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Should investors be concerned? The 10-year U.S. Treasury yield is the global benchmark for asset pricing. Rising yields affect global equities, but improving corporate earnings can offset these risks. In August, both the Dow Jones and S&P 500 hit new highs, showing U.S. markets remain bullish. The Fed is likely to hold rates steady this year, reducing the chance of sustained long-term yield increases. Investors need not worry excessively.

Regarding the surge in debt issuance by major cloud infrastructure firms, as previously discussed in the article 'Morgan Stanley and JPMorgan Turn Bullish? Is the AI Narrative Shifting, and Can Taiwan Stocks Rebound in a V-Shaped Recovery?', these companies are now in a capital return phase with massive backlogs. Despite concerns over excessive capital spending, bond offerings are still met with strong market demand—benefiting Taiwan's supply chain.

Today (August 19) marks the Taiwan stock index futures settlement. A pullback on settlement day often sets the stage for a post-settlement rally. The weighted index finds support below the quarterly moving average. Investors should use market corrections to buy resilient or support-tested AI blue-chip stocks—especially those with solid fundamentals in 'volume growth' and 'price hikes', such as:

Taiwan stocks are pulling back to jump higher. Don’t fear short-term volatility—view it as a repositioning opportunity. This chance is here now—will you seize it? The downside room is limited, and buying opportunities won’t last. Members have already started entering positions. Don’t miss out—join me now at https://user225916.pse.is/money668

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AI Blue-Chip Stocks with 'Volume Growth' and 'Price Hike' Fundamentals:

Passive Components: Yageo (2327-TW), Nippon Electric Switch (3090-TW), Walsin Technology (2492-TW)

Memory: Winbond Electronics (2344-TW), Nanya Technology (2408-TW)

ABF: Unimicron (3037-TW), Nan Ya PCB (8046-TW), Kinsus Interconnect (3189-TW), Zhen Ding-KY (4958-TW)

CCL: Tatung Company (2383-TW), Tripod Technology (6274-TW), Laminated Object Manufacturing (6213-TW), Kingboard Holdings (8358-TW), Dehong (5475-TW)

Thermal Solutions: JC Group (3653-TW), Acbel Polytech (3017-TW), CTCI (3324-TW), E-One Moli Energy (2486-TW)

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Source: Moore Investment Advisory – Analyst Ye Junmin

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 accordingly.