ANALYSIS: How AI has rewired Taiwan’s stock market

The AI boom has transformed Taiwan's stock market into a global heavyweight, but this growth is highly concentrated in a few firms, particularly TSMC. This extreme dependence on a single company and strong foreign capital influence, alongside active local retail investors, makes the TAIEX unusually vulnerable to sudden shocks. The article explores how AI has redefined the market's structure, investor behavior, and its sensitivity to global financial trends.