TAIWAN-TECHNOLOGY-SEMICONDUCTOR
The Taiwan Weighted Stock Index fell 1,165.28 points on November 12, closing at 43,091.87, a drop of 2.63%. Market analysts pointed out that the decline in Nvidia's stock price and the controversy surrounding its CEO exacerbated investors' wait-and-see attitude towards AI concept stocks.

Taiwan’s stock market was hit by the personnel turmoil surrounding Nvidia CEO Jensen Huang and selling in US technology stocks on Nov. 12, triggering a sell-off in AI-related heavyweight electronics stocks. The Taiex ended down 1,165.28 points, or 2.63%, at 43,091.87, with turnover reaching NT$1.01 trillion. The decline highlighted growing uncertainty over the AI industry’s outlook and technology stock valuations.

According to a Central News Agency (CNA) report, the Taiex fluctuated near its previous close in morning trading before selling pressure gradually intensified after noon. The decline accelerated toward the close. The index reached an intraday high of 44,525.24 and fell as low as 42,943.50, swinging more than 1,500 points during the session.

Market participants said Nvidia shares briefly fell about 8% in after-hours trading in the US, raising concerns that volatility in the leading AI chipmaker could spread across the broader AI supply chain. Given Nvidia’s important position in the global AI computing market, changes and controversy surrounding its management have also prompted investors to take a more cautious view of the industry’s development.

Large-cap electronics stocks were the main source of selling pressure. TSMC shares fell 2.30% to close at NT$2,340, dragging the Taiex down by about 440 points. MediaTek dropped 3.51%, Nanya Technology fell 3.68% and ASE Technology Holding declined 5.02%.

Market analyst Tsai Ming-han said investors were concerned that weakness in Nvidia shares could affect other AI-related stocks. With technology shares having posted substantial gains recently, some investors may have taken the opportunity to trim their holdings as uncertainty increased.

The decline also underscored the close ties between Taiwan’s stock market and the global AI supply chain. Taiwan’s semiconductor, server, cooling, power management and advanced packaging industries are all closely connected to AI data center construction and high-performance computing demand. As a result, major developments involving US technology companies are often quickly reflected in the performance of Taiwan’s electronics stocks.

However, a single-day market decline does not mean that demand for AI has already reversed. Investors will continue to watch Nvidia’s formal succession arrangements, capital spending by major cloud service providers and whether orders across the AI chip supply chain undergo any substantive changes.

Investors will also monitor the subsequent performance of US technology stocks, as well as the revenue and financial results of Taiwan’s major electronics companies, to determine whether the sell-off represents a short-term sentiment-driven correction or part of a broader reassessment of technology stock valuations.