Taiwan Stocks Plunge Below 40,000 at Midday
Selling pressure hit Taiwan stocks at midday on the 6th, with the TAIEX trending lower. As of 12:50 PM, it was down 1585.25 points, or 3.81%, at 39989.47 points, falling below the 40,000-point mark, with turnover of about NT$1.89152 trillion. A total of 1201 listed companies fell, including 1181 TWSE-listed and 20 TPEx-listed, while only 157 rose, including 154 TWSE-listed and 3 TPEx-listed, with another 42 flat, including 31 TWSE-listed and 11 TPEx-listed, showing a broad sell-off with large-caps and small-mid caps correcting together.
Gigabyte, Hon Hai and BizLink Post Record-High Revenues
Cathay Securities Investment Advisory highlighted market-focus stocks. Gigabyte posted October revenue of NT$67.04 billion, up 6% MoM and 137% YoY, a new record high, with monthly AI server revenue estimated at over NT$53 billion. Benefiting from data center buildout and AI server shipments, fourth-quarter revenue was revised up to double-digit QoQ growth, with order visibility extending to the first half of 2027, maintaining a Strong Buy rating. Hon Hai posted October revenue of NT$1.31 trillion, up 12.7% MoM and 45.7% YoY, a record high, driven by new Apple models and PC product pull-ins. With the ICT peak season in the fourth quarter and Vera Rubin rack contributions, AI revenue share continues to rise, maintaining a Buy rating. BizLink-KY posted October revenue of NT$11.846 billion, up 26.9% MoM and 80% YoY, a record high, driven by the Interplex consolidation and strong AI server demand, maintaining a Buy rating.
Substrate and Optics Outlook Positive, Parade Under Pressure
Nan Ya PCB benefited from AI product adoption and tight ABF substrate supply-demand, with third-quarter 2026 operations hitting a nearly three-year high. With capacity utilization near full and price-hike benefits in the fourth quarter, revenue is expected to hit new highs, with 2026-2027 EPS estimated at 17.84 and 52.91 yuan, maintaining a Buy rating. UMC posted October revenue of NT$25.197 billion, down 0.6% MoM and up 18.3% YoY, with capacity utilization above 92%. Blended ASP in the first quarter of 2027 is expected to rise 7% to 8% QoQ, maintaining a Buy rating. Largan Precision posted October revenue of NT$5.846 billion, up 1.2% MoM and down 6.6% YoY, with fourth-quarter revenue estimated at NT$17.01 billion, up 8.7% QoQ, maintaining a Buy rating. WIN Semiconductors posted October revenue of NT$2.056 billion, up 1.3% MoM and 31.9% YoY, maintaining a Buy rating. Parade-KY posted October revenue of NT$674 million, down 55.1% MoM and 39.4% YoY, with 2026-2027 EPS estimated at 25.31 and 30.13 yuan, maintaining a Neutral rating.
Green Energy and Cybersecurity Benefit from AI and Grid Demand
In green energy, AI data centers and grid upgrades are driving U.S. investment in power generation, storage, and transmission and distribution. EDPR, Enlight and OCI Energy are favored for 2026 to 2028, with First Solar in focus after 2029. Taiwan suppliers Cowa and Giga Solar benefit from the solar recovery, Fortune Electric and Shihlin Electric benefit from grid upgrades, and Delta Electronics, Kaori and AcBel benefit from AI data center microgrid and power management demand. In cybersecurity, AI Agents moving toward autonomous execution are driving demand for security governance, identity management and access control. U.S. stocks in focus are Palo Alto Networks, Zscaler and Okta, while Taiwan stocks eCloudvalley, GSS, Zero One and Systex benefit respectively from enterprise Agent platforms, AI governance, security integration and AI implementation service opportunities.