Taiwan's stock market delivered one of its strongest monthly performances in nearly four decades in April, with the weighted index surging 7,203.84 points, or 22.73%. The advance rested on firm fundamentals: March exports climbed to US$80.18 billion, up 61.8% year-on-year; external orders reached US$91.12 billion, rising 65.8%; and first-quarter GDP growth hit 13.69%, a pace last seen in the third quarter of 1987.
Xie Jin-he (謝金河), chairman of Wealth Media Group (財信傳媒集團), a Taiwan-based media and investment analysis firm, has singled out one major blue-chip name that lagged the euphoria:Hon Hai Technology Group (Foxconn,鴻海). While the rest of the large-cap sector raced ahead, Hon Hai has been left behind — setting the stage, analysts say, for the next leg of catch-up gains.
AI Boom Creates Clear Winners and Laggards Across Global Markets
The Taiwan surge formed part of a broader global story powered by artificial intelligence (AI). The Philadelphia Semiconductor Index jumped 38.4%, or 2,915.9 points. Intel's shares crossed US$100 after starting the prior year at US$17.67. TSMC's ADR and Broadcom each topped US$2 trillion in market value, Nvidia reached fresh record highs, and AMD's market capitalisation surpassed US$500 billion.
South Korea's KOSPI rose 30.8%, led by HBM chipmakers SK Hynix and Samsung. Taiwan's OTC index gained 24.87%, Japan's Nikkei 225 broke through 60,000 points for a 16.16% advance, and both the Nasdaq and Nasdaq 100 climbed more than 15%. By contrast, the S&P 500 and Dow Jones managed only about 1% gains, Indonesia's benchmark slipped 0.86%, and Singapore's rose a modest 0.56%. The gap between markets with heavy AI exposure and those without has rarely been so stark.
Taiwan's Tech Leaders Set New High-Water Marks
Within Taiwan, the largest names dominated the rally.TSMC(台積電) climbed to NT$2,330 — neatly matching its own stock code — as its U.S.-listed ADR surged.MediaTek (聯發科) reached NT$3,155 after confirming that its first AI accelerator ASIC had entered mass production on schedule. The company also raised its estimate for the total addressable ASIC market, projecting US$70–80 billion in related capital expenditure next year, and stepped up investment in advanced packaging technologies. Foreign investors responded by lifting target prices to NT$5,000, driving MediaTek's market capitalisation to roughly NT$5.06 trillion.
Delta Electronics (台達電)advanced to NT$2,280, lifting its Taiwan-listed market value to NT$5.62 trillion. Including its Thai operations — valued at approximately 3.98 trillion baht — the combined group approaches NT$10 trillion in total market value, cementing its status as a favourite of global institutional investors.
Record Gap Between Delta and Hon Hai Points to Opportunity
What has drawn Xie's attention is the widening gulf between Delta Electronics and its long-time peer Hon Hai. Delta's market capitalisation now stands at NT$5.62 trillion against Hon Hai's NT$3.065 trillion — a NT$2.5 trillion difference that is the largest in the two companies' history. Pioneer Investment Weekly chief analyst Huang Chi-yi (黃啟乙) had forecast years ago that Delta would eventually overtake Hon Hai; not only has that happened, but the gap continues to expand.
Hon Hai paid a dividend of NT$7.20 per share this year, compared with Delta's NT$11.60. Last year the company reported EPS of NT$13.61. With volume shipments of Rubin server cabinets expected to accelerate, analysts project full-year revenue approaching NT$1 trillion and EPS potentially exceeding NT$16. Its price-to-earnings ratio remains attractive relative to peers that have already run sharply higher.
A Familiar Pattern — Already Seen at UMC
Market observers see parallels withUnited Microelectronics Corp.(UMC,聯電). After sector-wide upgrades in the foundry business, UMC's gross margin rose to 29.19% and first-quarter EPS reached NT$1.29. Following Powerchip's exit from its Tongluo plant, UMC absorbed additional mature-process orders. Once its ADR broke above US$13, the Taiwan-listed shares finally cleared NT$80, and domestic institutions raised their target price to NT$108.
The dynamic is the same: a solid but lagging large-cap name begins to catch up once its stronger peers have already delivered the initial surge.
Why Patient Investors Are Now Watching Hon Hai
With TSMC, MediaTek and Delta Electronics having led the way, many analysts believe the next phase of gains among Taiwan's large-cap names could belong to Hon Hai. The stock offers a classic catch-up profile: improving earnings visibility from AI server demand, direct exposure to the booming infrastructure build-out, and a valuation that has yet to fully price in the sector's momentum.
Taiwan's commanding position in global AI supply chains — underscored by the strong export and GDP numbers — continues to draw international capital. While few expect a repeat of the late-1980s multi-fold surge, the structural tailwinds are powerful and have not yet lifted every major listed company.
For international investors seeking the next blue-chip move in Taiwan's AI-driven market, Hon Hai may simply be waiting for its turn.
*This article is authorized for republication from Wealth Investment Weekly, Issue 2403.
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