The AI boom has driven a rapid rise in Taiwan's stock market capitalization, officially surpassing India to become the world's fifth-largest stock market, simultaneously boosting the performance of Taiwan stock funds. Observing the various types of Taiwan stock funds this year, general, technology, small-mid cap, and China-concept funds have all delivered impressive returns, with many funds doubling their performance, reflecting continued capital focus on AI and technology growth themes.
Taiwan's capital market status has been upgraded again. The total market capitalization of Taiwan stocks has reached $4.95 trillion, slightly higher than India's $4.92 trillion, ranking fifth globally. Led by the AI boom and tech stocks, capital continues to return to the Taiwan market, and the performance of Taiwan stock funds has been outstanding.
According to CMoney statistics as of the 28th, looking at the returns of various types of Taiwan stock funds this year, whether general, technology, small-mid cap, or China-concept, the top three performers all delivered impressive results, with some funds doubling their returns, showing the power of the Taiwan stock bull market.
In terms of general funds, the top three performers this year are: Yuanta New Mainstream, Yuanta Economics and Trade, and Yuanta Duoduo, with returns of 130%, 121.1%, and 111.8% respectively. Among them, Yuanta New Mainstream's six-month return reached 144.9%, benefiting from the continued strength of AI, semiconductors, and high-priced electronics stocks.
Technology funds also performed strongly, with Morgan Emerging Technology taking the crown with a return of 116.9% this year and 129.9% over the past six months; followed by Yuanta High-Tech at 104.9% and Allianz Taiwan Technology at 101.9%, driven by sustained demand for AI servers, ASICs, high-speed transmission, and advanced manufacturing processes.
Due to the strong performance of the OTC market this year, the OTC index has risen 56.5%, far outperforming the Weighted Index's 50.6%, which also boosted the performance of small-mid cap funds. Among small-mid cap funds, Schroder Taiwan Lohas Small-Mid Cap took first place with 131.6%, followed by Union Small-Mid Cap at 117.6% and Nomura Small-Mid Cap at 102%. For China-concept funds, the top three this year are Taishin China Concept at 105.8%, Union China Dragon at 100.8%, and Fubon New Taiwan Businessman at 97.3%.
An Tai Taiwan Technology Fund Manager Chou Ching-lieh said that the Taipei International Computer Show ignited related themes early, and NVIDIA's "billion-dollar feast" provided incentive, leading to a strong rebound, with related themes showing strength and boosting market momentum.
Looking at the past week, themes including power supply/800V, price hike themes such as silicon wafer power components, passive components and copper foil substrates, as well as low-valuation semiconductor supply chains, continued to lead the market upward, with the market's focus on AI remaining unchanged.
Looking ahead, Morgan Emerging Technology Fund Manager Ye Hong-ru pointed out that the supply chain restructuring driven by the US push for onshore manufacturing benefits Taiwan companies most directly. However, he suggested that investors should strictly examine the adjustment capabilities of related Taiwan companies in the supply chain.
Given that the market's focus on AI has long shifted from themes to fundamental profitability and verification, and the changes in AI new specifications and the acceleration of agentic AI development, while driving opportunities for related supply chains, the timing and specification changes will also test Taiwan's ability to strengthen its moat. Therefore, the key to investment success relies on active stock selection.
Additionally, Union China Dragon Fund Product Coordinator Ho Yan-chang analyzed that with a population of about 23 million, Taiwan's market capitalization surpasses that of India, which has 1.4 billion people. The key lies in the global competitive advantage of the semiconductor industry. As demand for AI, high-performance computing, and advanced manufacturing processes rapidly heats up, Taiwan's core position in the global technology supply chain continues to strengthen, simultaneously boosting the performance of Taiwan's stock market capitalization.
Observing the top ten global stock markets, Asia now occupies six seats, and the center of global capital markets is gradually shifting eastward.
