BofA: Taiwan stocks surge on AI boom as tech sector dominates record gains

Investing.com -- Taiwan's stock market extended its artificial intelligence-driven rally in April, with the TWSE Index climbing 22.7% month-over-month to 38,926.63, according to Bank of America. The benchmark index has gained 34.4% year-to-date.

Average daily turnover reached NT$1.23 trillion ($38.9 billion) in the second quarter to date, up 187% year-over-year. The technology sector accounted for 79% of market turnover, compared with 2% for financials and 19% for non-tech sectors.

Total market capitalization rose 18% month-over-month to NT$127 trillion ($4.0 trillion) at the end of April. The technology and non-tech mix of market cap stood at 82% and 18%, respectively.

Margin loan balance increased 23% month-over-month to a record high of NT$641 billion, with margin trading representing 4% of turnover. Short-selling to turnover remained stable at 0.2% in April.

Active long-only funds maintained their overweight position on Taiwan at 0.95% in March, near record high levels, with semiconductors as the most overweighted sector. Taiwan stock exchange-traded funds recorded NT$1.5 trillion in assets under management increase year-to-date, with outstanding AUM reaching a new high of NT$4.7 trillion at end of April.

Taiwan's first quarter 2026 gross domestic product accelerated to 13.7% year-over-year, the fastest pace since 1987, driven by strong AI-related exports. Exports beat expectations in March with 61.8% year-over-year growth and set a new monthly record of $80 billion, with technology remaining the key driver.

April consumer price index rose to 1.74% year-over-year from 1.2% in March, driven by energy prices which increased 10.8% year-over-year. The Taiwan dollar appreciated 1.0% month-over-month against the U.S. dollar to 31.67 at end of April.

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