Taiwan’s stock market value has become larger than India’s for the first time in several years, mainly because of the sharp rally in artificial intelligence (AI) chip companies like Taiwan Semiconductor Manufacturing Company (TSMC).
The strong growth in AI demand has pushed up the share prices of Taiwan’s technology companies, helping Taiwan’s stock market overtake India in total market capitalisation.
Taiwan’s stock market value climbed to about $4.95 trillion, slightly ahead of India’s market capitalisation of around $4.92 trillion.
The rally was mainly driven by TSMC, the world’s largest contract chipmaker, whose shares surged due to massive global demand for AI chips.
Companies like Nvidia, Apple, and AMD depend heavily on TSMC for manufacturing advanced semiconductors.
TSMC’s stock has seen strong gains as investors expect AI-related demand to remain high for several years.
The company produces advanced chips used in AI servers, data centres, smartphones, and graphics processors.
Taiwan’s benchmark Taiex index has also gained sharply because technology stocks form a large part of the market.
Meanwhile, Indian markets have faced pressure due to foreign investor outflows, high valuations, and concerns related to global economic uncertainty and rising crude oil prices.
India’s stock market had earlier overtaken Hong Kong and briefly moved ahead of France and the United Kingdom in terms of market value.
However, the recent AI-driven boom in Taiwanese technology stocks helped Taiwan regain the lead.
Global investors are increasingly focusing on semiconductor and AI-related companies because of expectations that artificial intelligence will transform industries worldwide.
Nvidia has emerged as one of the biggest beneficiaries of the AI boom, and its rapid growth has indirectly benefited TSMC because Nvidia relies on the Taiwanese company for chip production.
Apple and AMD are also major customers of TSMC, further strengthening Taiwan’s position in the global semiconductor industry.
Despite Taiwan overtaking India in market value, analysts believe India continues to remain one of the fastest-growing major economies and an attractive long-term investment destination because of its strong domestic demand and expanding financial markets.
