Intraday Plunge of Over 1,600 Points, Close Down 1,156 Points at 45,211
Weighed by weakness in U.S. technology shares, earnings and guidance from tech giants, and synchronous declines across major Asian stock markets, Taiwan stocks plunged more than 1,600 points intraday on the 30th, falling below the 45,000-point mark. Buying on dips later emerged, while shipping, some financial and consumer stocks held up relatively well, leaving the index down 1,156.50 points to close at 45,211.83. On the trading board, electronics heavyweights and the AI supply chain were the main sources of selling pressure, with related groups broadly under pressure, showing that short-term capital has turned cautious amid volatility in international tech stocks and cooling market risk appetite.
Short-Term Sentiment Overrides Fundamentals, Volatility Widens Sharply
The Allianz Taiwan equities team said recent interest-rate moves, tech-giant earnings and international market news continue to disturb the market, with short-term investor sentiment clearly overriding fundamentals. As market sentiment turns cautious and capital momentum weakens, even companies reporting strong earnings have inevitably faced profit-taking pressure, sharply widening volatility in Taiwan stocks. Hsiao Hui-Chung, manager of the Allianz Taiwan Mobile Dam Fund and the Allianz Taiwan Technology Fund, said the short-term market remains disturbed by Federal Reserve policy expectations, interest-rate changes, AI investment concerns and tech earnings, with investor risk appetite cooling.
AI Demand and Cloud Spending Unchanged, Supply-Chain Momentum Strong
Hsiao Hui-Chung said cloud operators continue to expand AI capital expenditure, AI demand continues to grow, and Taiwan's key position in the global AI supply chain have not changed because of short-term market volatility. Corporate earnings remain an important fundamental factor supporting the mid- to long-term trend of Taiwan stocks, with no clear turn in industry fundamentals so far and orders and revenue momentum in AI-related supply chains remaining strong. Chen Si-Ming, manager of the Allianz Taiwan Intelligence Fund, also believes that with short-term noise rising and investment sentiment cautious, Taiwan stocks will repeatedly test the bottom, but AI demand, cloud capital expenditure and the profit-growth trend of Taiwan's supply chain remain unchanged, and the pullback instead offers a mid- to long-term opportunity to build positions in stages. With new-generation servers gradually shipping, related companies' fourth-quarter revenue is expected to continue growing.
Valuation Divergence Intensifies, Diversified Balanced Allocation Recommended
Liao Ben-Long, manager of the 00984A Allianz Taiwan High Dividend Growth Active ETF, pointed out that AI infrastructure, advanced computing and semiconductor supply-chain investment continue to advance, remaining structural momentum supporting mid- to long-term growth, but some growth industries have already risen sharply with elevated valuations, and market and industry divergence will become more pronounced, making stock selection and diversified allocation more important. The portfolio's largest industry allocation is financial holdings, with growth positions covering semiconductor wafer foundry, advanced packaging, memory, IC design, semiconductor equipment, PCB, industrial PCs and thermal solutions. Kuo Chin-Fu, manager of the 00993A Allianz Taiwan Active ETF, said Fed interest-rate policy, U.S. long-bond yields and the impact of geopolitics on oil prices and inflation remain variables, and capital will focus on AI companies with higher revenue and EPS growth visibility, with the rally shifting from a broad advance to divergence.