Taiwan Stocks Plunge Over 1,000 Points, Fall Below Quarterly Moving Average
Taiwan stocks on the 30th were pressured by weaker U.S. tech stocks, interference from tech giants' earnings reports and forecasts, and simultaneous declines in major Asian markets, once plunging over 1600 points intraday and falling below the 45000 level. Fortunately, low-level buying emerged, while shipping, some financial and consumer stocks held up relatively well, with the market closing down 1156.50 points at 45211.83. Market investment sentiment turned cautious, short-term funds turned conservative, and Taiwan stock volatility widened significantly.
Short-Term Sentiment Overrides Fundamentals
The Allianz Taiwan equity team said that, affected by international conditions and noise around tech giants' earnings, electronics heavyweights and the AI supply chain became the main sources of selling pressure, with related groups broadly under pressure, showing weakened short-term fund momentum amid volatility in international tech stocks and cooling market risk appetite. Allianz 台灣大壩 Fund and Allianz Taiwan Technology Fund manager 蕭惠中 believes that recent interest rate moves, tech giants' earnings, and international market news continue to disturb the market, with short-term investment sentiment clearly overriding fundamentals, and even companies reporting strong earnings inevitably facing profit-taking selling pressure.
AI Demand and Cloud Spending Unchanged
蕭惠中 said the market remains disturbed in the short term by Federal Reserve policy expectations, interest rate changes, AI investment concerns, and tech earnings, yet cloud operators' continued expansion of AI capital expenditure, sustained growth in AI demand, and Taiwan's key position in the global AI supply chain have not changed due to short-term volatility. Allianz Taiwan Intelligence Fund manager 陳思銘 also believes that amid much noise, Taiwan stocks will repeatedly test the bottom, but the trends in AI demand, cloud capital expenditure, and profit growth in Taiwan's supply chain remain unchanged. From an industry perspective, large U.S. cloud service providers continue to invest strongly in AI, and with next-generation servers gradually shipping, related companies' fourth-quarter revenue is expected to continue growing.
Offense-Defense Allocation Focuses on Earnings Visibility
00984A Allianz Taiwan High Dividend Growth Active ETF fund manager 廖本隆 pointed out that AI infrastructure, advanced computing, and semiconductor supply chain investment continue to advance and remain important structural momentum supporting Taiwan stocks' medium- to long-term growth, but some growth industries have already risen sharply with elevated valuations, and divergence will become more pronounced. In industry allocation, financial holdings are currently the largest industry allocation, while growth positioning covers semiconductor wafer foundry, advanced packaging, memory, IC design, semiconductor equipment, PCB, industrial PCs, and thermal solutions. 00993A Allianz Taiwan Active ETF fund manager 郭勁甫 said Federal Reserve interest rate policy, U.S. long-bond yields, and the impact of geopolitics on oil prices and inflation remain variables for the outlook, with the market entering an environment of high interest rates, high valuations, and high volatility, and funds will focus on AI-related companies with higher revenue and EPS growth visibility.