Taiwan Stocks Fall Below Half-Year Line as Five Resilient Stocks Eye Year-End Window Dressing

陳陳柏宏 證券線記者2026-11-01 18:59

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Taiwan stocks fell about 1.8% last week to lose the half-year line, with the PHLX Semiconductor Index plunging over 7% and night futures falling 867 points adding pressure. Champion analyst Zhao Pengbo won with 1.13% and lined up five resilient stocks, focusing on AI and semiconductors to chase the year-end window-dressing rally.

Taiwan Market Enters Consolidation After Losing Half-Year Line

Affected by weaker-than-expected earnings from U.S. tech giants and concerns over AI capital spending, Taiwan stocks lost the half-year line last week, with a weekly decline of about 1.8%. The market oscillated around the quarterly line and broke below the half-year line on October 30, with a clear short-term bull-bear tug-of-war. Facing an over 7% plunge in the U.S. Philadelphia Semiconductor Index and an 867-point plunge in TAIFEX night futures, Taiwan stocks may face catch-up selling pressure at the Monday (2nd) open. In the short term, watch the SOX index, foreign investor net buying/selling and TSMC moves to track market fund flows.

Champion Analyst Lines Up Five Stocks

In Hole 5 of the Commercial Times Taiwan stock competition, Pu-Hui Investment Consulting analyst Zhao Pengbo won the weekly championship with a single-week return of 1.13%. Entering Hole 6, Zhao selected five stocks: Sysage, New Best, ITTS, BizLink-KY and Unimicron, focusing on AI information services, semiconductor-related demand and high-speed transmission. Sysage is the top pick with a 50% allocation. The company focuses on servers, AI system integration and cloud services, and is expected to benefit from enterprise AI deployment, IT equipment upgrades and digital transformation demand.

Semiconductors and High-Speed Transmission in Focus

New Best accounts for 30%, with main products covering stainless steel wire and ultra-clean steel tubing for automotive, electronics and semiconductor industries, with opportunities from semiconductor plant expansion and advanced-process equipment demand. ITTS accounts for 19.97%, specializing in AI system integration, cloud services and enterprise security, targeting enterprise AI adoption, smart factories and digital transformation. BizLink-KY focuses on AI server high-speed cables, high-power power supplies and optical interconnects, while Unimicron focuses on ABF substrates and high-end PCBs, benefiting from growing AI GPU, ASIC and HPC high-performance computing demand, tight high-end substrate supply, and AI chip upgrade and advanced packaging themes.

Focus on Year-End Window Dressing With Disciplined Execution

Zhao pointed out that volatility in U.S. tech stocks and rate-hike expectations are both factors affecting Taiwan stocks, especially as TSMC strength will drive broader market performance. If foreign investors keep trimming large-cap heavyweights, index volatility may widen. Taiwan fundamentals remain supported by the AI industry, with the September monitoring indicator flashing red for the 10th straight month, showing a heated economy. But market funds have shifted from chasing AI themes to scrutinizing corporate revenues, profits and actual orders. Looking to November, the year-end window-dressing rally is worth watching. Taiwan stocks remain in a bull-bear consolidation phase near 45,000 points. Investors should stress fund allocation and stop-loss discipline, and gradually raise holdings only after the market stabilizes and volume-price structure improves.

FAQ

Why did Taiwan stocks fall below the half-year line last week?

Affected by weaker-than-expected earnings from U.S. tech giants and concerns over AI capital spending, Taiwan stocks lost the half-year line last week, falling about 1.8% for the week and breaking below the line on October 30. With the SOX index plunging over 7% and TAIFEX night futures plunging 867 points, short-term pressure increased.

Which five stocks did Zhao Pengbo select for Hole 6?

They are Sysage, New Best, ITTS, BizLink-KY and Unimicron, with Sysage allocated 50% at the top, New Best at 30%, and ITTS at 19.97%, focusing on AI information services, semiconductor-related demand and high-speed transmission.

What is the key focus for November trading?

Looking to November, the year-end window-dressing rally is worth watching. Taiwan stocks remain in a bull-bear consolidation phase near 45,000 points. Investors should stress fund allocation and stop-loss discipline, watch the SOX index, foreign investor net buying/selling and TSMC moves, and raise holdings only after the volume-price structure improves.