Taiwan overtakes India as world's 5th largest stock market Taiwan's stock market has surpassed India's in value, marking a significant shift in global equity rankings. As of May 26, 2026, Taiwan's market capitalization reached $4.95 trillion, overtaking India's $4.92 trillion. This transition is primarily attributed to the explosive growth of Taiwan Semiconductor Manufacturing Co. (TSMC), which now constitutes about 42% of the island’s benchmark index. TSMC’s shares surged 49% in 2026, driven by its dominant position in the artificial intelligence (AI) semiconductor sector. The chipmaker’s success has fueled optimism about AI’s transformative impact on global markets, disproportionately benefiting manufacturing hubs like Taiwan and South Korea. India, meanwhile, faces challenges that have dampened its stock market performance. The country’s equity value has declined to $4.92 trillion, with its market index dropping 8% this year. Factors such as surging energy costs, slowing corporate earnings growth, and a lack of direct AI-related companies have contributed to this decline. Foreign investors have sold nearly $24 billion in Indian equities since the start of 2026, as they redirected capital toward AI-driven opportunities in Taiwan and South Korea. India’s weight in the MSCI Emerging Markets Index has also fallen to 12% from 19% in 2025, reflecting reduced global confidence in its market. The rise of Taiwan’s stock market is further amplified by regulatory changes. Taiwan’s financial regulator recently raised the investment limit for domestic funds in individual stocks, allowing funds focused solely on Taiwanese equities to hold up to 25% of their net assets in any company whose weighting exceeds 10% in the Taiwan Stock Exchange.#taiwan_semiconductor_manufacturing_co #taiwan_stock_market #taiwan_semi_conductors #india_stock_market #taiwan_stock_exchange
ASML Raises 2026 Guidance as AI Chip Demand Stays Strong ASML, the Dutch semiconductor equipment manufacturer, has revised its 2026 sales forecast upward following strong first-quarter results that exceeded industry expectations. The company’s performance is closely tied to global demand for advanced chips, particularly those used in artificial intelligence (AI) applications. ASML’s latest guidance reflects sustained interest in AI-related infrastructure investments, which have driven continued growth in chip manufacturing. The company reported net sales of 8.8 billion euros ($10.4 billion) for the first quarter, surpassing the 8.5 billion euros forecast by financial analysts. Net profit also exceeded expectations, reaching 2.8 billion euros compared to the projected 2.5 billion euros. These results were driven by robust demand for AI chips, which have become a critical component of data centers, cloud computing, and advanced computing systems. ASML’s CEO, Christophe Fouque, highlighted the industry’s “solidifying growth outlook,” noting that customers are accelerating capacity expansion plans for 2026 and beyond. ASML’s revised 2026 sales forecast now ranges between 36 billion euros and 40 billion euros, up from its previous projection of 34 billion euros to 39 billion euros. This upward adjustment underscores the company’s confidence in the long-term demand for its high-end manufacturing tools, which are essential for producing the most advanced semiconductors. Fouque emphasized that “demand for chips is outpacing supply,” a trend supported by long-term agreements between ASML and its clients. A significant portion of ASML’s recent sales has been directed toward memory chips, which are critical for AI systems and data centers.#south_korea #tsmc #asml #christophe_fouque #taiwan_semiconductor_manufacturing_co
