Taiwan overtook India in stock market value, powered mainly by a breakneck rally in the world’s largest chipmaker Taiwan Semiconductor Manufacturing Co.
The island’s market capitalization climbed to $4.95 trillion as of Monday, according to data compiled by Bloomberg. India’s value has dropped to $4.92 trillion. Taiwan’s stock market is now the fifth largest in the world, behind only the US, mainland China, Japan and Hong Kong.
Taiwan’s ascent up the global equity rankings is largely driven by TSMC, which now accounts for about 42% of the benchmark index, representing intense market concentration. The chipmaker’s shares have rallied 49% this year as it has benefited from the artificial intelligence trade, in which its semiconductors have a dominant market position.
The surge in the island’s market value highlights intense optimism in AI that is triggering a global rally in tech shares, disproportionately benefiting manufacturing hubs such as Taiwan and South Korea. India, on the other hand, is grappling with surging energy cost, slowing corporate earnings growth and the lack of companies directly linked to the AI buildout.
