FLTW - Taiwan Fund: Tech Continues To Pay Off
2024-05-15 13:30:37 ET
Summary
- Tech-heavy Taiwan has been on a tear this year.
- By over-indexing to tech growth, the Taiwan Fund has appreciated at an even faster clip.
- The fund has its flaws but still offers plenty to patient, growth-oriented investors.
After a particularly strong 2023, Taiwanese stocks look poised for another great year. The key driver remains the country’s technology sector, which has continued to surge on the back of AI chip demand optimism. If the latest monthly sales disclosure by semiconductor giant Taiwan Semiconductor Manufacturing (TSM) was anything to go by, growth in leading-edge chips still has plenty of legs – not only from higher unit sales but also from price growth. The rest of Taiwan’s supply chain is poised to also benefit from the AI wave, so even if we do see headwinds from the smartphone and automotive end-markets, overall earnings growth should remain well-supported....
Taiwan Fund: Tech Continues To Pay Off