Taiwan stocks surged past the 28,000-point mark, with memory and silicon photonics stocks experiencing a frenzy of investment, and computer peripheral stocks also following suit.

With the four major U.S. stock indices rising simultaneously, the Taiwan stock market today showed a strong momentum. Shortly after opening, it surged nearly 300 points, and the gains continued to expand, with the highest intraday level surpassing 28,100 points at one point, reflecting active market participation.

Large-cap stocks stabilize the market, and funds begin seeking new opportunities

Taiwan Semiconductor Manufacturing Company (2330) continued its role as the market leader, with its stock price opening high and climbing steadily, reaching around 1,470 NT dollars during the session, an increase of nearly 2.8%. Hon Hai Precision Industry (2317) also followed suit, rising about 1.8% during the session. However, MediaTek (2454) showed a pattern of opening high and then declining, turning red from black at one point, with a drop exceeding 1%. This suggests a rotation of funds among electronic stocks—not all large-cap stocks are favored equally.

Where are the funds flowing to? The answer points to memory-related sectors. Recently, foreign investors have frequently raised target prices for memory manufacturers, which exploded in today’s market, becoming the most dazzling focus. Macronix (6770) opened strongly and hit the daily limit at 40.45 NT dollars, with trading volume surpassing 460,000 shares, becoming the market’s top favorite. Nanya Technology’s subsidiary, Fuman Technology (8131), also hit the daily limit after announcing a 700 million NT dollar investment in advanced packaging capacity, focusing on AI and high-performance computing memory applications. Its stock price ignited the limit-up at 56.3 NT dollars, with over 10,000 buy orders at the ceiling during the session.

Silicon photonics and computer peripheral sectors rally together, retail investors and main forces move in unison

Silicon photonics-related stocks are blooming everywhere. GaAs wafer foundry Win Semiconductors (3105), after consolidating last week, re-emerged strongly today, hitting the daily limit at 191 NT dollars before noon. The market interprets this as—after NXP announced exiting the GaN power amplifier chip business, Taiwanese supply chain companies have the opportunity to take over this order shift, and early buying by funds is naturally optimistic.

Optical communication concept stocks also surged. Lianhua Optoelectronics (4979) rose over 9% during the session, WIT (6706) gained more than 8%, and others like BoroWave (3163), Fan Quen (6830), and Walsin Electric (2344) all increased over 5%. The widespread rise in this sector reflects the market’s optimistic attitude toward long-term optical transmission themes.

Interestingly, computer peripheral stocks also rose along with this rally, including Yijia (2402), Wende (6761), and Wacom (2313), which are electronic component manufacturers. This indicates that funds are not only focusing on high-tech cutting-edge industries but are also optimistic about the entire electronics supply chain.

Broad sector gains, what signals are behind this?

Analyzing the market structure reveals that funds are not fixated on a single sector but are rotating across various fields. Stocks hitting the daily limit appear in communication networks, electronic components, construction, chemicals, and more, including Xin Fuxing (4909), Huadian Grid (6163), Yaodeng (3138), Gongxin (5521), Rishenghua (1735), Dazhong Holdings (3701), Jimiao (1587), and others.

What does this phenomenon imply? Simply put, the market’s risk appetite has clearly increased, and funds are seeking rebound opportunities and thematic stocks across different sectors. This is often a typical signal of the year-end portfolio-building rally.

Long-term logic is clear, but short-term trading requires caution

From a fundamental perspective, the continuous expansion of AI applications is driving upgrades across the entire industry chain. From cloud computing to edge devices, the demand for advanced semiconductor processes, high-speed transmission, memory, and advanced packaging will only grow. This explains why today the semiconductor, memory, and silicon photonics sectors are rallying together—they are the beneficiaries of this long-term trend.

From an investment standpoint, tracking stocks that have recently been upgraded by foreign investors, possess technological leadership, and have clear operational prospects for next year is a good approach for year-end positioning. However, one should also be cautious—market rotation is very fast, and chasing high prices excessively can easily lead to losses. A more prudent strategy is to focus on targets with long-term industry trend protection, while closely monitoring international stock market movements and trading volume as references for adding or reducing positions.