Musk's Remarks Ignite Memory Stocks
Tesla CEO Elon Musk said robots will require far more memory than imagined, and once mass production begins, memory shortages will worsen. The market has refocused on memory stocks, bringing Taiwan-listed Nanya Technology, Winbond Electronics and other memory supply chain names into focus, with promising growth potential. Analysts said the era of physical AI robotics is arriving, and besides surging memory demand, custom ASIC chip opportunities should not be overlooked, with related companies' growth strength and share price performance worth watching.
Semiconductor ETFs Centered on TSMC
Analysts suggest investors bullish on the growth strength and price breakout potential of memory and ASIC companies can gradually build semiconductor ETF positions in batches as TSMC shares rebound near the six-month moving average. According to CMoney statistics, as of October 28, five semiconductor ETFs hold TSMC as their top holding. Except for the Taishin Taiwan IC Design ETF (00947), whose top holding is Global Unichip at 11.68%, all other Taiwan semiconductor ETFs list TSMC as their largest holding, playing a leading role, with varying TSMC weightings.
Performance Led by IC Design and Semiconductor 30
In terms of performance, over the past 1 year, Taishin Taiwan IC Design rose 131.86%, the best performer, while over 3 years, Taishin Taiwan Semiconductor 30 (00904) led with a 282.84% total return including dividends. Huang Yu-min, manager of Taishin 00904 and 00947, said semiconductor stocks were weak mainly due to surging U.S. Treasury yields, but with strong earnings from U.S. tech companies and a continued robust 2027 earnings outlook, short-term buying could still be supported. In addition, TSMC's latest earnings call reconfirmed strong global semiconductor chip demand, raising earnings visibility, while AI demand will continue to bring new orders to the semiconductor supply chain.
Short-Term Focus on Spending and Earnings Support
Huang Yu-min noted that in the short term, share prices will hinge on whether AI capital spending, memory demand and corporate earnings provide further support. For the medium- to long-term outlook, he expects U.S. midterm elections and Taiwan local elections in November, with historical experience showing a relatively high probability of market gains before elections. With the semiconductor industry growth trend unchanged and corporate earnings fundamentals still supportive, once external uncertainties become clearer, Taiwan stocks could stage a technical rebound after a corrective phase. Taiwan's AI and semiconductor supply chains have strong order-taking ability, with advanced process technology, a mature supply chain ecosystem and long-term customer partnerships keeping their competitive moat intact. Investors are advised to hold Taiwan semiconductor sector ETFs or ETFs centered on IC design and memory in batches to capture new opportunities from the global AI rally expansion.