Resignation Shock Turns Taiwan Stocks From Gains to Losses
NVIDIA co-founder and CEO Jensen Huang abruptly resigned, shocking the global AI industry. Taiwan stocks were hit by the leadership turmoil on the 12th, turning from gains to losses intraday, with the weighted index plunging 1,165.28 points to close at 43,091.87 points, down 2.63%, and turnover exceeding 1 trillion yuan. As Nvidia formally announced that Jensen Huang resigned as CEO, president and director, market uncertainty became clearer, sparking a panic-bottoming rebound.
Relief Rally Rebounds Back Above 44,000 Points
Taiwan stocks staged a sharp rebound on the 13th, surging more than 1,200 points in early trading to retake the 44,000-point mark. According to intraday data at 11:04 AM, the weighted index reached 44,037.04 points, up 945.17 points, or 2.19%. The price action shows the market did not continue to panic after Jensen Huang formally left Nvidia, with funds quickly flowing back, underscoring Taiwan stocks' high sensitivity to AI industry news.
Institutions Bought Against Trend as Margin Financing Cooled
Finance fan page "Chip Guy Ge" noted after the close that the three major institutional investors net bought about 51.6 hundred million yuan on the 12th sell-off, diverging from the market decline. Among them, foreign investors sold a net 6.84 hundred million yuan, marking 11 consecutive trading days of net selling, but net selling has been below 1,000 million yuan for two straight days; investment trusts bought a net 123.85 hundred million yuan, marking 23 consecutive trading days of net buying; proprietary traders sold a net 65.41 hundred million yuan. The data show the plunge was not caused by heavy foreign selling, with domestic institutions still willing to take over shares.
The focus on chips is margin balances. Listed-company margin financing fell by 76.83 hundred million yuan on the 12th, and listed plus OTC margin financing fell by about 94 hundred million yuan in total, compared with an increase of 44.79 hundred million yuan in listed-company margin financing during the previous day's rally, indicating short-term funds that entered on the rebound took profits or stopped out on the negative news. However, with the index down 2.63%, listed-company margin balances fell only about 1.4%, meaning leveraged positions have not been fully washed out. Even with a strong rebound, turnover, margin changes and foreign-investor moves still need to be watched to confirm whether funds are returning or it is just a deep-oversold technical rebound.
Next Week's Earnings the Real Test
The market's next focus is Nvidia's third-quarter earnings due November 17 U.S. time. This will be the first time the market examines operations and outlook after Colette Kress became interim CEO. In addition to revenue and profit, investors are watching whether AI chip demand remains strong, progress on next-generation products, and whether capital expenditure and supply-chain orders are affected. For Taiwan, short-term orders may not immediately reflect the impact, but TSMC, Hon Hai and AI supply chains such as cooling and PCB may still be affected by changes in business strategy, with follow-up observation returning to fundamentals and fund flows.