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Taiwan's stock market fell as foreign investors continued to sell off technology stocks, but revenue growth accelerated in June, and TSMC's financial report became the focus (Goldm

2026-07-12·ima-daily5min-0712-21-97363e2318

Street Signal | Taiwan's stock market fell as foreign investors continued to sell off technology stocks, but revenue growth accelerated in June, and TSMC's financial report became the focus (Goldm

The Taiwan stock market (TAIEX) fell 3% last week, underperforming regional indexes, mainly because QFII (qualified foreign institutional investors) continued to be net sellers of technology stocks, selling US$5.9 billion in the past week.

However, the year-on-year revenue growth of listed companies accelerated to 57% in June, and second-quarter sales tracking reached 104% of consensus expectations. The market consensus expects Taiwan's overall second-quarter profit to increase by 96% year-on-year, while MSCI Taiwan's second-quarter profit is expected to increase by 66% year-on-year.

Analysts are raising capital spending and shipment forecasts for companies such as TSMC due to demand for AI and servers. Market concerns about foreign selling and short-term stock price weakness are in stark contrast to strong earnings fundamentals and AI demand logic, and this divergence may create buying opportunities.

One-sentence conclusion: Taiwan's stock market is currently experiencing a significant divergence between foreign capital outflows and strong fundamentals. Earnings revisions driven by AI demand will provide a solid foundation for subsequent rebounds. TSMC's financial report is the core catalyst.

Good/bad: Good for Taiwan technology stocks, especially AI-related industry chains such as TSMC. The market has priced in a foreign sell-off and near-term uncertainty, but may underreact to strong earnings to come.

Catalysts: 1) 2Q26 financial reports of TSMC (July 16) and other technology companies to verify profits and prospects; 2) whether the trend of foreign capital outflows has slowed down; 3) terminal demand data such as AI servers and CPUs.

Full text

Taiwan's stock market fell as foreign investors continued to sell off technology stocks, but revenue growth accelerated in June, and TSMC's financial report became the focus (Goldm

The Taiwan stock market (TAIEX) fell 3% last week, underperforming regional indexes, mainly because QFII (qualified foreign institutional investors) continued to be net sellers of technology stocks, selling US$5.9 billion in the past week. However, the year-on-year revenue growth of listed companies accelerated to 57% in June, and second-quarter sales tracking reached 104% of consensus expectations. The market consensus expects Taiwan's overall second-quarter profit to increase by 96% year-on-year, while MSCI Taiwan's second-quarter profit is expected to increase by 66% year-on-year. Analysts are raising capital spending and shipment forecasts for companies such as TSMC due to demand for AI and servers. Market concerns about foreign selling and short-term stock price weakness are in stark contrast to strong earnings fundamentals and AI demand logic, and this divergence may create buying opportunities. One-sentence conclusion: Taiwan's stock market is currently experiencing a significant divergence between foreign capital outflows and strong fundamentals. Earnings revisions driven by AI demand will provide a solid foundation for subsequent rebounds. TSMC's financial report is the core catalyst. Good/bad: Good for Taiwan technology stocks, especially AI-related industry chains such as TSMC. The market has priced in a foreign sell-off and near-term uncertainty, but may underreact to strong earnings to come. Catalysts: 1) 2Q26 financial reports of TSMC (July 16) and other technology companies to verify profits and prospects; 2) whether the trend of foreign capital outflows has slowed down; 3) terminal demand data such as AI servers and CPUs.

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