Taiwan's stock market surged past 37,000 points, surpassing the UK's market capitalization to become the world's seventh largest stock market.

The Taiwan Weighted Index (TAIEX) has hit 37,000 points for two consecutive days. The total market capitalization of Taiwan stocks (including listed and OTC stocks) has reached approximately US$4.14 trillion (over NT$130 trillion), officially surpassing the UK to become the world's seventh largest stock market.

AI orders prop up Taiwan stock valuations

The core driving force behind the rapid expansion of Taiwan's stock market capitalization is clearly the structural expansion of global demand for AI infrastructure. NVIDIA continues to increase its procurement scale from the Taiwanese supply chain, with demands for CoWoS advanced packaging, HBM memory integration, and server rack assembly making Taiwanese manufacturers such as TSMC, ASE, and Quanta irreplaceable production nodes.

Retail investor participation hits a new high; 60% of Taiwanese have opened accounts.

Another aspect to observe in this round of market activity is the extensive expansion of Taiwan's domestic capital market. Statistics show that the number of retail investors opening stock accounts in Taiwan has reached a record high, with 60% of Taiwanese people owning securities accounts—a figure that is extremely high even among major global markets.

The increased participation rate of retail investors reflects the high level of recognition of the development of the technology industry in Taiwanese society. On the other hand, it also forms a huge pool of funds. While foreign investment pushes up the valuation of TSMC, domestic capital simultaneously takes over small and medium-sized technology stocks, supporting the broad-based upward structure of the weighted index.

It is worth noting that a market structure with a high concentration of retail investors often implies higher volatility risk when valuations expand rapidly, and attention should be paid to the amplifying effect of short-term sentiment.

The AI ​​boom is reshaping the Asian capital landscape.

Bloomberg, in its report titled "Taiwan Market Cap Tops $4 Trillion on AI Boom, Overtaking UK," characterized Taiwan's recent surge in stock prices as a concrete manifestation of AI demand reshaping the global capital market landscape. The report pointed out that Taiwan's core position in semiconductor manufacturing and the AI ​​supply chain has led to a structural upward revaluation of its capital market weighting in a short period.

The role of companies like TSMC, Foxconn, and Quanta in the AI ​​infrastructure wave has been redefined by the market as "core suppliers of AI infrastructure," moving beyond the previous single definition of "contract manufacturer."