Investment institutions said that as the AI craze continues and companies have strong profit momentum, the Taiwan stock market is expected to challenge 50,000 points in the fourth quarter (File photo/Photo by reporter Wang Menglun)
[Reporter Wang Menglun/Report from Taipei] Domestic investment institutions said today that as long as the general trend of AI investment remains unchanged, the market's forecast for the annual profit growth rate of Taiwan-listed OTC companies from 2026 to 2027 will remain at a high double-digit rate. Looking forward to the trend of Taiwan stocks in the fourth quarter, continued optimism in fundamentals is an important driving force for the stock market's rise. In addition, corporate profit growth momentum continues. Therefore, in the short term, "challenging 50,000 points is not a dream" for Taiwan stocks.
Looking forward to the trend of Taiwan stocks in the fourth quarter, Shen Jianhong, manager of Taishin Taiwan Small and Medium-sized Active ETF Fund (00416A), said that the decline in U.S. Treasury bond yields from highs, coupled with the surge in U.S. optical communications stocks, encouraged Taiwan stocks to close higher, closing up 122.25 points on October 2, and staying above the 48,000-point mark.
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Shen Jianhong pointed out that the subsequent trend of Taiwan stocks needs to observe changes in U.S. bond yields and international capital flows. If U.S. bond yields can stabilize their decline, or even fall below 5%, or foreign investors continue to overbuy, then Taiwan stocks will start a rebound offensive and further challenge new highs.
In addition, Taishin Investment Consulting stated that there are three major positive factors for Taiwan stocks, including: "Corporate profits have hit highs, and the supply chain is optimistic about future operating prospects." "New iPhones are expected to drive supply chain operating performance."
The legal person stated that since the time is approaching the end of the year, the market will test "whether the company's profits this year meet the standards" and "whether it continues to grow in the fourth quarter of this year." The quarterly increase in price-rising concept stocks in the fourth quarter will determine whether a new wave of stock price increases can start. If the price-rising theme reappears, and the momentum of corporate profit growth continues, "Taiwan stocks will be challenged in the short term, and 50,000 points is not a dream."
Taishin Investment Trust also pointed out that in the long term, the fundamentals continue to be optimistic, which is an important driving force for the stock market's rise. The U.S. PMI hit a new high in more than four years, showing that corporate momentum is accelerating, alleviating market concerns about an economic slowdown, supporting corporate profit prospects, and boosting market confidence in holding shares.
As long as the general trend of AI investment remains unchanged, the market's forecast for the annual profit growth rate of Taiwan-listed OTC companies from 2026 to 2027 will remain at high double-digit growth. Taiwan's small and medium-sized niche stocks, which are key to the global AI supply chain, have strong profit momentum and will act as the leader in Taiwan stocks' challenge to new highs. It is recommended to prioritize the placement of Taiwan's small and medium-sized active ETFs on dips, which is expected to increase the investment winning rate.
In terms of stock operations, Shen Jianhong is optimistic about AI supply chain benefits such as material upgrades, power innovations, new designs, etc.; optical communication supply chain; key components; semiconductor upstream materials and equipment; stocks benefiting from the establishment of factories in the United States; price-increasing groups such as passive components, power ICs, silicon wafers; high dividend yield groups, etc.
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