AI Drives TAIEX Surge; TIER Says Not a Bubble, But Watch for Capital Outflow Risks
The Taiwan Institute of Economic Research (TIER) stated that the recent TAIEX surge is driven by solid AI investments and is not a bubble. However, they cautioned investors to be wary of potential capital outflows if the US Federal Reserve reduces its balance sheet.
📋 Article Processing Timeline
- 📰 Published: April 24, 2026 at 16:21
- 🔍 Collected: April 24, 2026 at 16:31 (10 min after Published)
- 🤖 AI Analyzed: April 24, 2026 at 22:03 (5h 31m after Collected)
Central News Agency
(CNA Reporter Pan Tzu-yu, Taipei, 24th) Undeterred by the turmoil of conflicts in the Middle East, the Taiwan stock market has been surging since April, challenging the 39,000-point barrier. Chang Chien-yi, President of the Taiwan Institute of Economic Research (TIER), believes that this wave of Taiwan stock gains is primarily driven by AI concept stocks. While this certainly reflects investors' expectations for future profits, AI truly holds a promising future; "AI will not be a bubble."
Sun Ming-te, Director of TIER's Macroeconomic Forecasting Center, pointed out that besides Taiwan, the US, China, Japan, and South Korea are all developing high-tech industries. Looking at the situations in the US, Japan, and Korea, the stock market still has growth momentum.
However, Sun Ming-te stated that currently, AI concept stocks are the strongest in the Taiwan market. It is like "one watermelon is so large that it absorbs the nutrients of other smaller watermelons." The capital market is not developing in a balanced manner. We should consider how to drive the growth of other industries so that industrial development is balanced and other sector stocks also have room to rise, which is conducive to the long-term development of the capital market.
Chang Chien-yi believes that an increased appetite for risk assets has created the astonishing rally in Taiwan stocks. Especially popular AI themes like silicon photonics "leave a lot of room for future imagination." This wave of Taiwan stock increases reflects the market's expectations for future profits, even factoring in next year or the year after. However, the market must be aware that global liquidity is currently abundant. It remains to be seen whether massive funds will continue to flow into risk assets if Kevin Warsh, the nominee for the new US Federal Reserve Chairman, decides to shrink the balance sheet to lower inflation expectations.
But Chang Chien-yi emphasized not to underestimate the future possibilities of AI. This is different from the dot-com bubble event in 2000. AI will not be a bubble because this wave is "solid investment."
Sun Ming-te added that an Oxford University paper pointed out that historically, major human inventions, such as the steam engine, electrical equipment, and electronic products, have all driven waves of investment lasting decades or even a century. Every major invention expands gradually from a point to a line and then to a surface. Now that we have entered the AI era, the research believes this wave of AI investment will last for at least 20 years.
Sun Ming-te stated that Taiwan's AI investment is just getting started, surging upwards in 2024 and exploding in 2025, with even more room for growth in the future. Currently, AI servers are still confined to the enterprise end. As AI deeply integrates into daily life applications, "in the future, TSMC will not be the only one standing out." (Editor: Lin Chia-hsien) 1150424
Stand with the facts; every sponsorship you make is the strength to protect press freedom.
Download the CNA 'First Hand News' APP to instantly grasp the latest news.
The text, images, and audio/video on this website may not be reproduced, publicly broadcast, or publicly transmitted and utilized without authorization.
(CNA Reporter Pan Tzu-yu, Taipei, 24th) Undeterred by the turmoil of conflicts in the Middle East, the Taiwan stock market has been surging since April, challenging the 39,000-point barrier. Chang Chien-yi, President of the Taiwan Institute of Economic Research (TIER), believes that this wave of Taiwan stock gains is primarily driven by AI concept stocks. While this certainly reflects investors' expectations for future profits, AI truly holds a promising future; "AI will not be a bubble."
Sun Ming-te, Director of TIER's Macroeconomic Forecasting Center, pointed out that besides Taiwan, the US, China, Japan, and South Korea are all developing high-tech industries. Looking at the situations in the US, Japan, and Korea, the stock market still has growth momentum.
However, Sun Ming-te stated that currently, AI concept stocks are the strongest in the Taiwan market. It is like "one watermelon is so large that it absorbs the nutrients of other smaller watermelons." The capital market is not developing in a balanced manner. We should consider how to drive the growth of other industries so that industrial development is balanced and other sector stocks also have room to rise, which is conducive to the long-term development of the capital market.
Chang Chien-yi believes that an increased appetite for risk assets has created the astonishing rally in Taiwan stocks. Especially popular AI themes like silicon photonics "leave a lot of room for future imagination." This wave of Taiwan stock increases reflects the market's expectations for future profits, even factoring in next year or the year after. However, the market must be aware that global liquidity is currently abundant. It remains to be seen whether massive funds will continue to flow into risk assets if Kevin Warsh, the nominee for the new US Federal Reserve Chairman, decides to shrink the balance sheet to lower inflation expectations.
But Chang Chien-yi emphasized not to underestimate the future possibilities of AI. This is different from the dot-com bubble event in 2000. AI will not be a bubble because this wave is "solid investment."
Sun Ming-te added that an Oxford University paper pointed out that historically, major human inventions, such as the steam engine, electrical equipment, and electronic products, have all driven waves of investment lasting decades or even a century. Every major invention expands gradually from a point to a line and then to a surface. Now that we have entered the AI era, the research believes this wave of AI investment will last for at least 20 years.
Sun Ming-te stated that Taiwan's AI investment is just getting started, surging upwards in 2024 and exploding in 2025, with even more room for growth in the future. Currently, AI servers are still confined to the enterprise end. As AI deeply integrates into daily life applications, "in the future, TSMC will not be the only one standing out." (Editor: Lin Chia-hsien) 1150424
Stand with the facts; every sponsorship you make is the strength to protect press freedom.
Download the CNA 'First Hand News' APP to instantly grasp the latest news.
The text, images, and audio/video on this website may not be reproduced, publicly broadcast, or publicly transmitted and utilized without authorization.