Heavy Selling in Large-Cap and Memory Stocks Drags Taiex Down 716 Points Below Monthly Moving Average
On the 19th, the Taiwan stock market opened low and trended lower, weighed down by weakness in large-cap stocks like TSMC and MediaTek, as well as a sharp decline in the memory sector. The Taiex closed down 716.26 points at 40175.56, falling below its monthly moving average. Analysts suggest this is a pullback after significant gains, with funds rotating into stocks with lower valuations. All eyes are now on Nvidia's upcoming earnings and the Computex trade show in June to support the AI theme.
📋 Article Processing Timeline
- 📰 Published: May 19, 2026 at 15:56
- 🔍 Collected: May 19, 2026 at 16:31 (35 min after Published)
- 🤖 AI Analyzed: May 19, 2026 at 22:29 (5h 58m after Collected)
(CNA, Taipei, 19th) The Taiwan stock market opened low and trended downward today, dragged by weakness in large-cap stocks like TSMC and MediaTek, as well as a steep sell-off in the memory sector. The market ultimately closed down 716.26 points at 40175.56, breaking below the monthly moving average of 40235. An investment analyst noted that this is a pullback after a strong rally, with funds shifting to stocks with lower valuations. Future performance will hinge on Nvidia's earnings report, while the Computex show in June is expected to support the AI theme.
U.S. stocks traded choppily today, with major indices mostly ending lower. Asian markets were also weak, with South Korea's market falling by about 3%. Taiwan's stock market opened lower and, despite an attempt to turn positive in early trading, the decline widened, hitting a low of 40168.51 near the close.
The Taiex closed down 716.26 points, or 1.75%, at 40175.56, with a turnover of NT$1.088073 trillion. The electronics sub-index fell 2.2%, while the financial sub-index rose 1.24%. The over-the-counter (OTC) index dropped 2.8%, closing below its monthly moving average of 401.53.
Regarding large-cap stocks, TSMC finished down NT$35 at NT$2205, a 1.56% drop. Yageo and Hon Hai (Foxconn) fell by about 1%, while MediaTek plunged over 7%, and Delta Electronics shed 5.2%. In contrast, Largan Precision hit a 5.5-year high of NT$3615 before pulling back from its limit-up price to close at NT$3365, still up 2.28%.
The memory sector was hit hard today, with Nanya Technology, Winbond, and Macronix all hitting their limit-down prices. Performance among AI benchmark stocks was mixed; Gigabyte fell 7.72%, and Quanta Computer dropped 3.3%. The ABF substrate sector remained stable, with Unimicron, Kinsus, and Nan Ya PCB posting small gains, while Zhen Ding Technology Holding surged over 5%.
Telecom stocks became a safe haven, with Chunghwa Telecom soaring 4% to close at NT$142.5, a record high. Far EasTone and Taiwan Mobile also strengthened, closing up 1.24% and 2.19%, respectively.
Looking at high-priced stocks, market leader ASPEED Technology fell 1.39%, and second-ranked Gowin Technology dropped about 7%, falling below the NT$10,000 mark and ending the 'dual 10k stocks' situation for now. Many high-priced stocks were volatile, with Inno-Tech, Phison, Yong-Chin, and Aiptek hitting their limit-down, and Shin-Etsu Materials falling below the NT$1,000 level. The number of stocks priced above NT$1,000 on the Taiex retreated to 47.
Wang Rong-xu, CEO of Manulife Investment Management, told CNA that the Taiwanese market is experiencing a pullback after substantial gains, with no significant change in fundamentals. He said market concerns over renewed tensions in the Middle East, coupled with a prior rally in U.S. tech stocks and a decline in the Philadelphia Semiconductor Index, prompted investors to take profits ahead of Nvidia's earnings report. However, the Dow Jones Industrial Average's limited decline suggests that funds are merely rotating and adjusting, not completely exiting the market.
Wang further pointed out that the situation in Taiwan's stock market is similar to that in the U.S., with technology stocks and high-valuation stocks leading the pullback. In contrast, sectors like passive components, ABF substrates, and mature process technologies have been relatively resilient. This indicates the decline is not broad-based, and the market has not yet turned bearish, with financial stocks remaining strong.
Looking ahead, Wang believes Nvidia's earnings will be key. If the results exceed expectations, the market could see a short squeeze rally after the correction. If they disappoint, the sell-off could intensify. Nevertheless, with the Computex show in June, the AI theme still has support. Barring major negative news, the current market action can be seen as a consolidation phase after a strong run-up.
U.S. stocks traded choppily today, with major indices mostly ending lower. Asian markets were also weak, with South Korea's market falling by about 3%. Taiwan's stock market opened lower and, despite an attempt to turn positive in early trading, the decline widened, hitting a low of 40168.51 near the close.
The Taiex closed down 716.26 points, or 1.75%, at 40175.56, with a turnover of NT$1.088073 trillion. The electronics sub-index fell 2.2%, while the financial sub-index rose 1.24%. The over-the-counter (OTC) index dropped 2.8%, closing below its monthly moving average of 401.53.
Regarding large-cap stocks, TSMC finished down NT$35 at NT$2205, a 1.56% drop. Yageo and Hon Hai (Foxconn) fell by about 1%, while MediaTek plunged over 7%, and Delta Electronics shed 5.2%. In contrast, Largan Precision hit a 5.5-year high of NT$3615 before pulling back from its limit-up price to close at NT$3365, still up 2.28%.
The memory sector was hit hard today, with Nanya Technology, Winbond, and Macronix all hitting their limit-down prices. Performance among AI benchmark stocks was mixed; Gigabyte fell 7.72%, and Quanta Computer dropped 3.3%. The ABF substrate sector remained stable, with Unimicron, Kinsus, and Nan Ya PCB posting small gains, while Zhen Ding Technology Holding surged over 5%.
Telecom stocks became a safe haven, with Chunghwa Telecom soaring 4% to close at NT$142.5, a record high. Far EasTone and Taiwan Mobile also strengthened, closing up 1.24% and 2.19%, respectively.
Looking at high-priced stocks, market leader ASPEED Technology fell 1.39%, and second-ranked Gowin Technology dropped about 7%, falling below the NT$10,000 mark and ending the 'dual 10k stocks' situation for now. Many high-priced stocks were volatile, with Inno-Tech, Phison, Yong-Chin, and Aiptek hitting their limit-down, and Shin-Etsu Materials falling below the NT$1,000 level. The number of stocks priced above NT$1,000 on the Taiex retreated to 47.
Wang Rong-xu, CEO of Manulife Investment Management, told CNA that the Taiwanese market is experiencing a pullback after substantial gains, with no significant change in fundamentals. He said market concerns over renewed tensions in the Middle East, coupled with a prior rally in U.S. tech stocks and a decline in the Philadelphia Semiconductor Index, prompted investors to take profits ahead of Nvidia's earnings report. However, the Dow Jones Industrial Average's limited decline suggests that funds are merely rotating and adjusting, not completely exiting the market.
Wang further pointed out that the situation in Taiwan's stock market is similar to that in the U.S., with technology stocks and high-valuation stocks leading the pullback. In contrast, sectors like passive components, ABF substrates, and mature process technologies have been relatively resilient. This indicates the decline is not broad-based, and the market has not yet turned bearish, with financial stocks remaining strong.
Looking ahead, Wang believes Nvidia's earnings will be key. If the results exceed expectations, the market could see a short squeeze rally after the correction. If they disappoint, the sell-off could intensify. Nevertheless, with the Computex show in June, the AI theme still has support. Barring major negative news, the current market action can be seen as a consolidation phase after a strong run-up.