Taiwan Stocks Plunge Over 1000 Points, Lose 6-Month Moving Average
Taiwan stocks opened low and moved lower on the 30th, with the weighted index closing down 1156.5 points at 45211.83, falling below the 6-month moving average, with October cumulative losses of 2728.3 points. The index touched an intraday low of 44726.26, down as much as 1642.07 points at most, with losses narrowing into the close but still plunging over 1000 points, as the market suffered a shakeout on the final trading day of October.
US Tech Earnings Spark AI Investment Concerns
The selling pressure was linked to market concerns sparked by US tech earnings. After Alphabet reported earnings, the market focused on surging AI capital expenditure and pressure on free cash flow; Amazon also raised payback concerns over massive AI investment, while Intel fell over 20% in after-hours trading at one point on a fourth-quarter outlook that missed market expectations. Selling in US tech shares further affected Asian markets, and Taiwan stocks could not stay out of it. On the board, TSMC (2330) fell 45 to close at 2370; Delta Electronics (2308) hit limit-down, and Yageo (2327) plunged over 7%, with electronics heavyweights and AI concept stocks broadly under pressure.
Short-Term Correction Does Not Mean Trend Reversal
Moore Investment Advisory Chief Investment Officer Guo Zherong said the market is currently holding tech giants to very strict standards on earnings, with shares likely to be sharply corrected even on good results if some data miss market expectations. Using Asian parents looking at report cards as an analogy, he said market expectations for tech giants are too high, with short-term misses sparking panic. He stressed, however, that the AI industry is still developing rapidly, with companies investing in data centers, chips and automation equipment, which may raise capital expenditure and squeeze free cash flow in the short term, but that alone cannot be taken as a reversal in industry fundamentals, and a short-term correction does not mean a reversal of the long-term AI trend.
Quality Picks and Fourth-Quarter Positioning
Looking to the fourth quarter, Guo Zherong remains bullish on a rebound. He cited Taiwan stock performance over the past 10 years, noting that except for 2018 when hit by the US-China trade war, the fourth quarter rose in the other 9 years, saying the historical pattern provides a reference worth watching. He said that with Taiwan stocks correcting over 2700 points cumulatively in October, some short-term floating supply has been cleared, and if US tech stocks stop falling, AI investment concerns are gradually clarified, and external factors such as interest rates and trade tariffs turn favorable, Taiwan stocks still have a chance to rebound, though whether stability returns still depends on US stock stabilizing strength, foreign investor moves, and whether key supports can hold. On individual stocks, he is bullish on VisEra (3374) on its advanced packaging theme, offering a long-term target view of 800 to 1000; UMC (2303) has corrected to an attractive level after pulling back from highs, with particular attention to the 105 to 102.5 range, while still checking mature-process demand, capacity utilization and profit changes. He also named Faraday Technology (3035) with ASIC and AI themes, Yageo (2327) and GlobalWafers (6488) as worth watching during the correction, and prefers the Yuanta Taiwan 50 (0050) ETF for investors who want to participate in the broader market without concentrating bets on single stocks. On strategy he reminded that there is no need to panic-sell on sharp declines, nor should every pullback be treated as a guaranteed buying opportunity, and investors can build positions in batches based on capital and risk tolerance while keeping cash on hand, with the most important risk-control principle being to avoid using margin or borrowed money to buy stocks, so as not to face margin calls or forced selling from leverage pressure.