Taiwan stocks strongly rebound by 846 points, driven by leading IC concept stocks, while memory chip sector faces cold reception

NVIDIA('s Q3 earnings report exceeded expectations, sparking a spectacular capital rotation feast in the Taiwan stock market. The weighted index surged by 846.24 points, a 3.18% increase, closing at 27,426.36 points, marking the second-largest single-day gain in Taiwan stock history. The trading volume also broke through NT$577.021 billion, fully demonstrating market bullishness.

NVIDIA’s Earnings Ignite Market Enthusiasm, Chip Demand Surpasses Expectations

NVIDIA announced its third-quarter results as of October 26, once again setting a remarkable record. Quarterly revenue reached US$57 billion, a 62% year-over-year increase; net profit soared to US$31.91 billion, a growth rate of 65%. In terms of profitability efficiency, adjusted gross margin remained high at 73.6%, and earnings per share of US$1.3 exceeded market expectations.

CEO Jensen Huang expressed high optimism about the market performance of the new Blackwell chips during the earnings call. He emphasized that the GPU products for cloud computing are facing “exceptionally strong” market demand, with all GPU products for cloud computing sold out, and overall computing demand maintaining continuous growth.

Drive IC Concept Stocks Rise Strongly, Leading Large Cap Stocks to Boost the Index

In this upward trend, large-cap stocks played a key role. TSMC’s stock price reached a high of NT$1,460 intraday, closing up NT$60 at NT$1,455, an increase of over 4%, serving as a leading indicator. Heavyweights such as Hon Hai, Delta Electronics, Quanta, and MediaTek also rose simultaneously, jointly pushing up the overall market.

Drive IC and AI-related concept stocks became the focus of capital chasing. PCB stocks performed outstandingly, with Goldsun and Gold Circuit opening limit-up, while Jingcheng Technology, Fuhjow, and several other stocks also hit the limit-up. Glass manufacturer Taiwan Glass, driven by the earnings call theme, surged strongly to hit the limit-up. A total of 18 listed and OTC stocks locked at the limit-up, indicating a concentrated influx of capital.

Memory Sector Reverses Course, Specification Changes Spark Market Concerns

Despite the bullish momentum of the broader market, the memory sector experienced a clear correction. Winbond Electronics briefly hit the limit-down intraday, and Nanya Technology also fell sharply by over 9%. Industry analysts pointed out that NVIDIA plans to optimize AI server power consumption by shifting memory specifications from DDR5 to LPDDR, which will reshape the supply and demand landscape. Winbond and Nanya closed down by 2.36% and 2.81%, respectively, with trading volumes exceeding 400,000 shares, showing high market attention to this change.

Sector Rotation Clearly Evident, Focus Points for the Future Emerge

Sector performance showed clear differentiation, with glass and component stocks performing the best, with gains of 8.77% and 5.37%, respectively. Textile stocks were relatively weak, fully reflecting a shift in capital flow.

Looking ahead, analysts believe that NVIDIA’s earnings report not only boosted drive IC concept stocks but also provided clear order outlooks and investment confidence for the entire AI industry chain. Investors should closely monitor the subsequent developments of major international tech giants, observe the rotation of capital among sectors, and consider the long-term impact of memory market specification changes on industry structure.