FLTW - The Taiwan Fund: Flipping Bullish As Tech Tailwinds Intensify

2024-02-22 17:56:04 ET

Summary

• Taiwan’s leverage to global tech tailwinds has been a major boon to its stock market.
• In bull markets, a higher beta, tech-heavy fund like Nomura’s Taiwan Fund tends to add a fair bit of outperformance.
• Long-term, growth-oriented investors should find a lot to like in heavily discounted TWN.

Taiwan has kicked off the year on a high, with monthly export growth running in the high teens, led by a +30.1% rebound for tech products. Digging deeper, the artificial intelligence-linked 'information and communication product' category was particularly strong at +100.6% YoY, boosted by growth areas like servers and storage devices. For all the talk about GPU chips and NVIDIA Corporation ( NVDA ), Taiwan, as the global chip supply chain hub, is perhaps best positioned to capture the full spectrum of AI. For instance, a prospective shift in compute needs toward ASIC chips ('application-specific integrated circuit') is required for 'inferencing' (vs the more GPU-heavy 'training')....

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