# Taiwan Stocks Fall 2.5% as AI Selling Briefly Pushes Index Into Correction

By Token Post

Canonical URL: https://www.tokenpost.com/news/insights/44439
Published: 2026-10-30T08:53:36.000Z
Updated: 2026-10-30T08:53:36.000Z
Section: Insights & Views

> The benchmark fell as much as 3.5% intraday, while TSMC and Delta weighed on the index. MediaTek and Delta outlined continued AI-related demand.

Taiwan’s weighted index fell 2.5% Friday, Oct. 30, as global AI share weakness drove a sell-off that briefly put the benchmark more than 10% below its Oct. 6 record.

The index dropped as much as 3.5% intraday before trimming losses. It closed near the correction threshold. Taiwan Semiconductor Manufacturing Co. fell 1.8%, MediaTek lost 3.2% and Delta dropped 9.8%. Taiwan Semiconductor Manufacturing and Delta were the index’s largest drags.

Investor concerns included higher borrowing costs, heavy AI capital spending and disappointing earnings. Vey-Sern Ling, managing director at Union Bancaire Privee, said the pressure reflected sentiment around global AI stocks more than a deterioration in Taiwan’s fundamentals. Ling pointed to major cloud providers’ continued spending plans and improved company-level visibility as signs of stronger underlying conditions.

MediaTek forecast fourth-quarter revenue of NT$210.1 billion to NT$221.8 billion, up 25% to 32% from the prior quarter. The company confirmed a second cloud ASIC customer, with revenue expected to begin in 2028, and maintained its $16 billion target for 2027 ASIC revenue.

Delta forecast that major cloud providers’ combined capital spending would reach $1.2 trillion to $1.5 trillion next year. It also said power shortages would worsen and that it was discussing product price increases with customers. A decision could come as early as the fourth quarter or the first quarter of next year.