Nvidia’s blockbuster second-quarter numbers, along with its upbeat outlook, not only ignited a chip rally on Wall Street but also lifted global markets, including Taiwan, which has been a key beneficiary of the ongoing AI boom.
The TAIEX, Taiwan’s benchmark stock index, closed Friday’s session 0.8% higher at 46,349, its highest level since 6 July, as strong earnings and an upbeat outlook from Nvidia boosted sentiment across AI-linked stocks.
Among the key contributors was TSMC, the world’s largest contract chipmaker, which rose 0.4%. The company accounts for nearly 40% of the TAIEX’s total market value and is a key manufacturer of Nvidia’s advanced AI chips, making Nvidia’s strong results and upbeat outlook positive for TSMC’s growth prospects.
The close relationship between the two companies is significant, with Nvidia estimated to account for more than 20% of TSMC’s total annual revenue in 2026, making it the Taiwanese chipmaker’s largest customer, although TSMC does not disclose individual customer revenue figures in its quarterly earnings reports.
Nvidia’s revenue for the July fiscal quarter more than doubled to $96.2 billion, while adjusted profit came in at $2.22 per share. Revenue from the data centre segment reached $89 billion, representing a 117% jump from the previous year, while edge computing revenue rose 27% year-on-year to $7.2 billion.
The US chip giant now expects revenue to grow by approximately 70% in fiscal 2028, suggesting that demand for chips powering artificial intelligence projects remains strong. The results and upbeat outlook helped ease some of the concerns that had recently built around AI stocks.
The positive sentiment was further supported by another technology giant, Salesforce, which issued strong growth guidance following its quarterly results. The company said AI helped it deliver one of its best quarters in history, reporting stronger profit than analysts expected.
Broad-based tech rally
Along with TSMC, another Taiwanese technology stock, MediaTek, jumped 1.9%. Others, such as Delta Electronics, advanced 2.2%, and major memory chip supplier Nanya Technology was up 0.2%.
Among the session’s top gainers, Walsin Technology Corp surged 10% to close at 313.50, while BizLink Holding Inc climbed 9.98% to 2,260. Wieson Technologies Co Ltd. also gained 9.96% to end the session at 26.50.
On the other hand, Mirle Automation Corp was among the biggest losers, falling 9.95% to 190. Lianyou Metals Co Ltd declined 6.27% to 1,495, while Top Bright Holding Co Ltd dropped 6.23% to close at 271.
TAIEX gains 58% in 2026
With Friday’s rally, the TAIEX has gained 58% so far in 2026, extending its annual winning streak to a fourth consecutive year.
The year-to-date rally now trails South Korea’s KOSPI by just 3 percentage points, with the latter gaining around 61%. South Korea’s rally has been largely driven by gains in Samsung Electronics and SK Hynix.
Meanwhile, foreign investors pulled $22.95 billion from Taiwanese equities in July, when the TAIEX suffered its biggest monthly decline since March, falling 6.65%. However, the index has recovered all of those losses in August, rising 6.62% so far, with only one trading session left in the month.
(With inputs from agencies)
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