Taiwan Stocks Surge on Heavy Volume, Futures Briefly Rise Over 1,000 Points
Taiwan stocks opened higher and moved higher on the 28th amid signs of easing geopolitics, with the weighted index closing up 939.35 points at 47035.58, turnover reaching 7221.35 hundred million yuan, and futures up more than 1,000 points intraday, indicating a clear return of sidelined funds. Moore Investment Advisory Chief Investment Officer Guo Zherong noted the rebound was linked to reported progress in peace talks over the US-Iran conflict and the Russia-Ukraine war, including negotiation signals from Iran's supreme leader, with markets hoping for de-escalation.
If Oil Prices and Inflation Cool, Funding Pressure on AI May Ease
Prolonged conflict in the Middle East and between Russia and Ukraine has pushed up oil prices and inflation, forcing the Federal Reserve to keep interest rates high and keeping borrowing costs elevated for funding-dependent AI companies. Guo Zherong analyzed that if peace agreements are reached, oil prices and inflation could cool, corporate funding costs would fall, helping depressed AI technology stocks attract returning funds, and he believes it could even bring further upside of 1,000 to 2,000 points for the broader market. The above reflects the analyst's view; actual performance will still depend on negotiation progress and the overall economy.
Microsoft to Cut 60,000 Jobs, AI Buildout Seen as Hedge
Meanwhile, AI's impact on the job market continues, with Microsoft planning to cut as many as 60,000 employees, reflecting a trend of companies adopting AI to boost efficiency and adjust traditional workforces. Guo Zherong believes that rather than worrying about being replaced, investors should focus on AI supply chains such as ASIC chips, autonomous driving and robotics, likening holdings in AI stocks to personal unemployment insurance to hedge career risk with capital gains.
Low-Base Picks Named: Walsin TechnologyXintecFaraday Technology and Memory
On stock selection, Guo Zherong named both strong momentum names and low-base catch-up plays. Walsin Technology2492 rose nearly 7% in a single day after being positioned near 369, with a 44% gain over the move, showing the explosive power of low-base passive components; Xintec3374 rose from a low of 180 to 190 to 500, a 159% gain, but has moved far from the cost zone, warning against blindly chasing highs; Faraday Technology3035 features ASIC custom-chip themes and a relatively low base, with rebound momentum anticipated. In memory, demand for high-performance memory from AI servers is in focus, with strong results from SK Hynix helping South Korean stocks bottom out, while long-term shortages and demand trends remain intact, with pullbacks at lows seen as positioning opportunities. Investors are reminded that investing involves risks and should carefully assess their own risk tolerance before entering.