Taiwan Surpasses India To Become World’s 5th Largest Stock Market Amid AI Boom
In a major shift in global markets, Taiwan has moved ahead of India to become the world’s fifth-largest stock market, thanks largely to the explosive rise of chip giant Taiwan Semiconductor Manufacturing Company.
According to data compiled by Bloomberg L.P., Taiwan’s total stock market value has climbed to nearly $4.95 trillion, slightly overtaking India’s market capitalization of $4.92 trillion. The only markets now ahead of Taiwan are the United States, China, Japan and Hong Kong.
The rally has been driven mainly by TSMC, the world’s largest semiconductor manufacturer, whose shares have surged almost 49% this year amid the global artificial intelligence boom. The company currently makes up around 42% of Taiwan’s benchmark stock index, showing just how heavily the island’s market depends on the tech sector.
The rapid growth reflects how AI-related companies are attracting massive investor interest worldwide. Countries with strong semiconductor and technology manufacturing industries, such as Taiwan and South Korea, are seeing huge gains as demand for AI infrastructure continues to rise.
Meanwhile, India has faced pressure from rising energy costs, slower corporate earnings growth and a smaller presence in the global AI hardware supply chain. Analysts say markets with limited exposure to advanced technology manufacturing are currently being overshadowed by AI-driven economies.
Taiwan’s market gains also received support from recent regulatory changes. The island’s financial regulator relaxed investment rules, allowing domestic funds to invest more heavily in individual companies like TSMC, further boosting investor confidence in the tech giant.
News source: Information for this article was gathered from a variety of reliable news outlets.
