Taiwan stocks break through 28,100 points! BBU concept stocks rotate and gain momentum, with memory and silicon photonics rising together

Taiwan stocks demonstrated strong upward momentum today, briefly breaking through 28,100 points during the session, with gains exceeding 470 points. Behind this rally is precise capital rotation among different mainstream sectors, with BBU concept stocks (driven by generative AI-related chips, bandwidth, and memory upgrades) becoming the main driving force. From the market structure, this is not a集中炒作 of a single sector, but led by industries with solid fundamentals and growth potential, continuously boosting market risk appetite.

Large-cap stocks provide steady support, capital rotation among electronics sectors

TSMC (2330), as the market’s anchor, opened high and continued to rise, reaching a high of 1,470 NT dollars during the session, up 2.8%, contributing significantly to the index. Hon Hai (2317) also steadily gained about 1.8%. However, it is worth noting that MediaTek (2454), another important large-cap stock, showed a pattern of opening high and then declining, turning negative at one point, with a drop of over 1%. This reflects active capital rotation among electronic stocks.

This phenomenon indicates that investors are seeking stocks with stronger growth stories. The BBU concept—driven by generative AI and data center expansion demands for chips, bandwidth, and memory—remains the current focus of capital chasing.

Memory sector surges across the board, supporting AI application opportunities

Memory-related stocks were the strongest focus today. Powerchip (6770) surged to hit the daily limit at 40.45 NT dollars early in the session, with over 460,000 shares traded, becoming the market’s favorite. This reflects recent sustained optimism from foreign investors toward memory stocks, with many institutions raising their target prices.

Nanya Technology’s subsidiary, Nanya Technology (8131), also performed well, announcing a 700 million NT dollar investment in advanced packaging capacity to meet AI and high-performance computing (HPC) memory demands. Its stock hit the daily limit at 56.3 NT dollars, with over 12,000 buy orders on the book. This indicates the market’s high valuation of memory manufacturers’ early deployment of new applications, a concrete manifestation of the “U” (upgrade computing demand) in the BBU concept.

Silicon photonics sector shows strong stance, optical communication growth theme is popular

In addition to memory, silicon photonics and third-generation semiconductors also attracted capital. Macron (3105), after a correction last week, rebounded strongly today, hitting the daily limit at 191 NT dollars before noon. The logic is that Nexperia announced exit from GaN (Gallium Nitride) 5G power amplifier business, which may allow Taiwanese supply chain companies to take over orders, warming up the pre-positioning buying.

The silicon photonics sector is flourishing. Advanced Optoelectronics (4979) rose over 9% at its peak, Witec (6706) gained more than 8%, and companies like PowaWave (3163), Pan-Quan (6830), and Walsin Technology (2344) also rose over 5%. These companies are key players in optical communication and high-speed transmission, benefiting from the “B” (bandwidth upgrade) in the BBU concept.

Sector rotation remains healthy, opportunities for catch-up in various fields emerge

Today’s market features a relatively healthy rotation of capital, not overly concentrated in a single sector. Besides semiconductors and optoelectronics, stocks in communication networks (New Renaissance, Huadian Network, Yao Deng), electronic components (Yijia, Wende, Wacom), construction, and chemicals (Gongxin, Nichi Chemical) also saw individual stocks hitting the daily limit.

This reflects that under the dual influence of the BBU concept and year-end profit-taking rally, market risk appetite has significantly increased. Investors are actively seeking thematic or lagging stocks across various fields for potential rebound opportunities, with capital flowing in a relatively dispersed manner rather than extremely concentrated.

Year-end outlook: focus on fundamentals and long-term growth momentum

Looking at today’s market, Taiwan stocks, driven by international markets and domestic capital, successfully broke through recent consolidation ranges. As generative AI applications continue to expand, the demand for computing power from cloud to edge devices will sustain the long-term growth of advanced semiconductor processes, high-speed transmission, memory, and advanced packaging supply chains.

Investors should focus on stocks recently upgraded by foreign institutions, with technological advantages or clear operational prospects for next year, for year-end positioning. At the same time, they should be aware of the risk of faster market rotation. It is recommended to prioritize assets aligned with industry trends and the BBU concept, and to keep an eye on international market movements and trading volume changes as operational references.