Weak US Tech Stocks Drag Down Taiwan Stocks
Taiwan stocks were affected on the 30th by weakness in US technology stocks, interference from tech giants' earnings reports and forecasts, and simultaneous declines in major Asian stock markets, intraday once plunging more than 1600 points and falling below the 45000 mark. Fortunately, low-level buying emerged, and shipping, some financial and consumer stocks held up relatively well, with the index finally falling 1156.50 points to close at 45211.83, with electronic heavyweights and the AI supply chain becoming the main source of selling pressure.
Cautious Short-Term Sentiment With Repeated Bottom-Testing
The Allianz Taiwan equities team said that affected by international conditions and noise from tech giants' earnings reports, related groups were generally under pressure, showing that amid volatility in international technology stocks and cooling market risk appetite, short-term funds have turned conservative. Allianz Taiwan Large Cap Fund and Allianz Taiwan Technology Fund manager Hsiao Hui-Chung believes that recent interest rate trends, tech giants' earnings reports and international market news continue to disturb the market, and short-term investment sentiment has clearly overridden fundamentals.
Volatility Amplified but Earnings Remain Support
Hsiao Hui-Chung pointed out that as market sentiment turns cautious and capital momentum weakens, even companies delivering strong earnings reports inevitably face profit-taking selling pressure, significantly amplifying Taiwan stock volatility. In the short term the market remains disturbed by Federal Reserve policy expectations, interest rate changes, AI investment concerns and technology stock earnings reports, with investor risk appetite cooling. Allianz Taiwan Smart Fund manager Chen Ssu-Ming also believes that with rising short-term noise and cautious sentiment, Taiwan stocks will repeatedly test the bottom.
AI Fundamentals Unchanged, Build Positions in Batches
From an industry fundamentals perspective, the medium- to long-term AI growth trend has not changed. Cloud operators continue to expand AI capital expenditure, AI demand maintains growth, and Taiwan's key position in the global AI supply chain has not changed due to short-term volatility. US large cloud service providers' AI investment momentum continues, and with next-generation servers gradually shipping, related companies' fourth-quarter revenue is expected to continue growing, with order and revenue momentum remaining strong.
Allocation Focuses on Financials and AI Supply Chain
00984A Allianz Taiwan High Dividend Growth Active ETF fund manager Liao Pen-Lung pointed out that investment in AI infrastructure, advanced computing and semiconductor supply chains continues to advance, remaining the 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 going forward. He recommends financial holding companies as the largest industry allocation, with growth allocations covering semiconductor foundry, advanced packaging, memory, IC design, semiconductor equipment, PCB, industrial computers and thermal solutions. 00993A Allianz Taiwan Active ETF fund manager Kuo Chin-Fu said that Federal Reserve interest rate policy, US long-bond yields and the impact of geopolitics on oil prices and inflation remain variables for the outlook, and with high interest rates, high valuations and high volatility coexisting, funds will focus on AI-related companies with higher revenue and EPS growth visibility.