US Tech Stocks, TSMC ADR Soar; Institutional Investors: Taiwan Stock Market Can Reach 42000 Points
Following strong earnings from AMD and a rally in US tech stocks, the US market hit new highs. TSMC's American Depositary Receipts (ADR) also surged, with analysts predicting the Taiwan stock market could reach 42000 points, while caution is advised regarding MediaTek's special trading measures.
📋 Article Processing Timeline
- 📰 Published: May 7, 2026 at 09:25
- 🔍 Collected: May 7, 2026 at 09:31 (6 min after Published)
- 🤖 AI Analyzed: May 7, 2026 at 09:40 (8 min after Collected)
Taipei, May 7 (CNA) US President Donald Trump's hint of a potential deal with Iran before visiting China, coupled with AMD's robust earnings report, spurred a strong rally in US stocks. The S&P, Nasdaq, and Philadelphia Semiconductor indices all reached new highs. TSMC's ADR set another record high, while Taiwan stock index futures soared 806 points in after-hours trading to close at a historical high of 42320 points. TSMC futures also closed at a new high of 2335 points, up 75 points.
Institutional investors anticipate that the Taiwan stock market has an opportunity to break above 42000 points at today's open, challenging its historical high once again, driven by the record-breaking surge in US tech stocks. However, attention must be paid to MediaTek, a major IC design firm, as it enters a special trading period starting today.
MediaTek's stock price surged by 820 NT dollars in the past three trading days, an increase of 31.42%, bringing its market capitalization to 5.5 trillion NT dollars. The Taiwan Stock Exchange announced on May 6 that from May 7 to May 20, MediaTek's trading would be subject to manual matching approximately every five minutes. MediaTek will become the largest stock by market value ever to be under disciplinary trading in Taiwan's stock market history.
Foreign media reported on May 6 that the US and Iran are discussing a one-page, 14-point memorandum, with Iran evaluating new proposals from the US aimed at ending the nearly 10-week-long war, leading to a significant drop in international oil prices.
This news invigorated US stocks, with the Dow Jones Industrial Average rising 612.34 points, or 1.24%, to close at 49910.59 points. The S&P 500 index climbed 105.90 points, or 1.46%, to a new high of 7365.12 points. The Nasdaq Composite index advanced 512.82 points, or 2.02%, to a new record of 25838.95 points, and the Philadelphia Semiconductor index surged 492.18 points, or 4.48%, to a new high of 11472.75 points.
Artificial intelligence chip giant NVIDIA rose 5.77% to close at 207.83 US dollars. TSMC's American Depositary Receipts (ADR) climbed 6.36% to a record high of 419.5 US dollars. AMD soared 18.61% to a new record of 421.39 US dollars. Intel gained nearly 4.5%, and Arm surged 13.63% to a new high of 237.3 US dollars.
The Taiwan Weighted Index touched a historical intraday high of 41575.84 points on May 6, fluctuating nearly 960 points before closing up 369.56 points at 41138.85 points, setting a new closing record. The total trading value of listed companies reached a new high of 1.524012 trillion NT dollars. The OTC market's trading value also hit a new high of 442.943 billion NT dollars on May 6, bringing the combined trading value of listed and OTC companies to 1.966955 trillion NT dollars, another new record.
The Taiwan electronic index touched a new intraday high of 2694.78 points on May 6, closing at 2663.65 points, also a new closing high for the electronic index. The Gretai (OTC) index, representing small and medium-sized stocks, touched a historical intraday high of 416.46 points, closing at 410.29 points, also a new closing high.
Foreign institutional investors and investment trusts were net buyers, while proprietary traders were net sellers, resulting in a total net buy of 67.275 billion NT dollars. Among them, foreign institutional investors were net buyers of 75.105 billion NT dollars, the fourth-largest net buy amount in history, marking three consecutive days of foreign buying.
However, observing the net positions in Taiwan index futures, the three major institutional investors increased their net short positions by 1780 contracts to 7106 contracts on May 6. Foreign institutional investors increased their net short positions by 2280 contracts to 50967 contracts.
Futures analysts believe that the replenishment of foreign institutional investors' net short positions on May 6, capitalizing on profit-taking pressure during the day, indicates that market funds still have confidence in the future, with no significant capital outflow. The volatility on May 6 was a result of profit-taking rotation after a significant rally. However, foreign institutional investors' net short positions in Taiwan index futures remain high, and their future movements in both index futures and the Taiwan spot stock market still require attention. (Edited by Yang Kai-xiang) 1150507
Institutional investors anticipate that the Taiwan stock market has an opportunity to break above 42000 points at today's open, challenging its historical high once again, driven by the record-breaking surge in US tech stocks. However, attention must be paid to MediaTek, a major IC design firm, as it enters a special trading period starting today.
MediaTek's stock price surged by 820 NT dollars in the past three trading days, an increase of 31.42%, bringing its market capitalization to 5.5 trillion NT dollars. The Taiwan Stock Exchange announced on May 6 that from May 7 to May 20, MediaTek's trading would be subject to manual matching approximately every five minutes. MediaTek will become the largest stock by market value ever to be under disciplinary trading in Taiwan's stock market history.
Foreign media reported on May 6 that the US and Iran are discussing a one-page, 14-point memorandum, with Iran evaluating new proposals from the US aimed at ending the nearly 10-week-long war, leading to a significant drop in international oil prices.
This news invigorated US stocks, with the Dow Jones Industrial Average rising 612.34 points, or 1.24%, to close at 49910.59 points. The S&P 500 index climbed 105.90 points, or 1.46%, to a new high of 7365.12 points. The Nasdaq Composite index advanced 512.82 points, or 2.02%, to a new record of 25838.95 points, and the Philadelphia Semiconductor index surged 492.18 points, or 4.48%, to a new high of 11472.75 points.
Artificial intelligence chip giant NVIDIA rose 5.77% to close at 207.83 US dollars. TSMC's American Depositary Receipts (ADR) climbed 6.36% to a record high of 419.5 US dollars. AMD soared 18.61% to a new record of 421.39 US dollars. Intel gained nearly 4.5%, and Arm surged 13.63% to a new high of 237.3 US dollars.
The Taiwan Weighted Index touched a historical intraday high of 41575.84 points on May 6, fluctuating nearly 960 points before closing up 369.56 points at 41138.85 points, setting a new closing record. The total trading value of listed companies reached a new high of 1.524012 trillion NT dollars. The OTC market's trading value also hit a new high of 442.943 billion NT dollars on May 6, bringing the combined trading value of listed and OTC companies to 1.966955 trillion NT dollars, another new record.
The Taiwan electronic index touched a new intraday high of 2694.78 points on May 6, closing at 2663.65 points, also a new closing high for the electronic index. The Gretai (OTC) index, representing small and medium-sized stocks, touched a historical intraday high of 416.46 points, closing at 410.29 points, also a new closing high.
Foreign institutional investors and investment trusts were net buyers, while proprietary traders were net sellers, resulting in a total net buy of 67.275 billion NT dollars. Among them, foreign institutional investors were net buyers of 75.105 billion NT dollars, the fourth-largest net buy amount in history, marking three consecutive days of foreign buying.
However, observing the net positions in Taiwan index futures, the three major institutional investors increased their net short positions by 1780 contracts to 7106 contracts on May 6. Foreign institutional investors increased their net short positions by 2280 contracts to 50967 contracts.
Futures analysts believe that the replenishment of foreign institutional investors' net short positions on May 6, capitalizing on profit-taking pressure during the day, indicates that market funds still have confidence in the future, with no significant capital outflow. The volatility on May 6 was a result of profit-taking rotation after a significant rally. However, foreign institutional investors' net short positions in Taiwan index futures remain high, and their future movements in both index futures and the Taiwan spot stock market still require attention. (Edited by Yang Kai-xiang) 1150507