Taiwan Stock Market Volatile Around 45,000 Points? Experts Identify 10 Next-Gen Dark Horses Across 'Electricity, Optics, Thermal' Sectors Amid Institutional Shakeout

The Taiwan stock market has recently entered a period of high-level volatility, trading intensely around the 45,000-point mark, causing hesitation among many investors who want to enter but fear overpaying, or wish to lock in profits but worry about missing further gains. Why has the momentum stalled?

Jason Jiang, analyst at Moore Investment Advisory, explains that market leaders often use sharp fluctuations to cleanse shareholdings, pushing out retail investors with low confidence. He emphasizes that pullbacks in the broader market actually present an ideal opportunity for long-term investors to gradually enter positions. Jiang highlights 10 stocks across three core sectors—electricity, optics, and thermal—as the next wave of dark horses.

Regarding the recent volatility around 45,000 points, Jiang notes that foreign investors have shifted from six consecutive days of net buying to net selling, the New Taiwan dollar has reversed from appreciation to depreciation, and the yield on 30-year U.S. Treasury bonds has surged past 5.33%, hitting a 19-year high. These factors have enabled foreign investors to aggressively short futures during settlement, while major players conduct intense share cleansing.

Jiang identifies two key drivers behind the market movement. First is Taiwan’s robust economic fundamentals—officially reported GDP growth reaching as high as 11%, indicating that quality companies remain the top choice for safe-haven capital. Second is Taiwan’s geographically unique monopolistic advantage amid U.S.-China rivalry. Regardless of how global dynamics shift, U.S. tech giants continue to heavily rely on Taiwan’s advanced manufacturing and chip packaging capabilities.

Jiang stresses that short-term corrections are merely overheating adjustments in terms of holdings and technical indicators. Major players often exploit market volatility to eliminate uncertain floating shares. For long-term investors, pullbacks represent excellent opportunities to gradually build positions. After the cleansing phase, market capital is expected to rapidly flow into core niche stocks within the 'electricity, optics, thermal' sectors.

Taiwan Market Favors Three Key Sectors: Electricity, Optics, Thermal – Jason Jiang Names 10 Stocks

Jiang identifies capital concentration in three major groups: electricity, optics, and thermal. Within optical communications and silicon photonics, key players include Lextar (epitaxy manufacturer) for critical CPO laser light sources, UniOpto (optical comms packaging and testing) benefiting from high-end optical module demand, and Hwa Create focusing on optical sub-modules.

### Substrate, Materials & Equipment Group:

Nanya PCB benefits from structural shortages in ABF substrates driven by AI chip demand. Tera Group’s high-end multilayer board CCL capacity has already been secured by global tech giants. Nanya Technology holds room for P/E and P/B ratio recovery amid memory upgrade trends.

### Computing Power Cooling Group:

As AI chip power consumption surges, Auras Technology leads in technology with rising water-cooling penetration, expecting leapfrog profit growth. Jen-Tex dominates the ultra-high-precision heat spreader segment with high market share, making it a steady profit winner. Goworld rides both liquid cooling system adoption and power system upgrades, offering significant long-term profit upside.