US Tech Earnings Disappoint, Taiwan Stocks Fall Below 46000
The U.S. Federal Reserve kept interest rates unchanged, but the latest earnings reports and guidance from U.S. tech giants came in below market expectations, deepening market concerns over AI-related capital spending and future growth momentum. Taiwan stocks plunged 1156 points on the 30th, down 2.49%, falling below the 46000-point mark, while the OTC index tumbled more than 4.4%. Since hitting a record high of 49822 points on October 6, the broader market has corrected by 9.25%.
Sound Fundamentals, Divergent Positioning Intensify Volatility
Guo Mingyu, manager of 00413A Active E.SUN Key Technology Fund, said Taiwan stocks are currently showing a pattern of sound fundamentals but divergent positioning. In the short term, affected by foreign investor operations and changes in margin financing, volatility in market positioning has intensified. Disturbed by multiple uncertainties including rising geopolitical risks, the U.S. midterm elections, and the direction of monetary policy, the broader market is expected to remain in a high-level consolidation pattern in the short term, and it will be necessary to keep watching the impact of foreign capital flows and changes in margin balances on market volatility.
On the positioning front, although foreign investors have recently cut holdings by a large amount, their current weighting in Taiwan stocks remains around 47%, and Guo Mingyu judges that short-term net selling and capital outflows are a normal profit-taking phenomenon. On the other hand, domestic and retail funds remain an important supporting force for the market, and the short-term correction will instead help wash out margin positions and build a healthier base for subsequent gains. She believes that overall, the medium-to-long-term outlook for Taiwan stocks remains cautiously optimistic.
Bullish on Core AI Names, Buy Quality Stocks in Batches
Looking ahead, Guo Mingyu said that although the market has fluctuated due to short-term news shocks, corporate earnings estimates continue to be revised upward, with Goldman Sachs forecasting Taiwan corporate earnings per share growth of up to 30% in 2027, showing that technology and semiconductor industries will remain the core engine driving Taiwan's economic and capital market growth. At this stage, technology industry fundamentals have not changed materially, and quality companies still attract buying support after share price pullbacks, making active stock selection even more important. Investors can wait for margin balances to further wash out and funds to flow back before buying in batches quality companies with long-term competitive advantages and growth potential. In terms of sector allocation, she remains bullish on core AI beneficiary groups such as optical communications and advanced manufacturing processes, and the recent pullback on market sentiment instead provides a more attractive medium-to-long-term entry opportunity. As third-quarter earnings reports are gradually released by mid-to-late November, market focus is expected to shift toward corporate earnings growth momentum and industry development trends for 2027, with funds also positioning early for next year's investments.