Investors double down on AI in Taiwan despite bubble fears

Despite concerns over an AI investment bubble, investors in Taiwan remain committed to the technology. The island nation shows no signs of worry about potential overvaluation in the sector.

Taiwan's investment landscape continues to favor artificial intelligence initiatives, even as global fears of an AI bubble intensify. According to recent reports, stakeholders are persisting with substantial commitments to AI development and infrastructure on the island.

The optimism stems from Taiwan's pivotal role in semiconductor manufacturing, which underpins much of the global AI ecosystem. Investors appear undeterred by warnings of speculative excess, viewing AI as a long-term growth driver rather than a fleeting trend.

This steadfast approach contrasts with broader market anxieties, where some analysts predict a correction in AI-related valuations. However, Taiwan's ecosystem, bolstered by companies like TSMC, reinforces confidence in sustained demand for AI hardware.

No specific figures on investment volumes were detailed, but the trend highlights Taiwan's strategic positioning in the technology supply chain. As the sector evolves, the region's focus remains on innovation and expansion amid the uncertainties.

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Dramatic trading floor scene showing Nvidia's AI profit surge amid market bubble fears and economic uncertainty.
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AI Market Jitters Grow as Nvidia’s Profits Surge and Tech Valuations Soar

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Nvidia has reported a massive jump in quarterly profit amid a broader boom in artificial-intelligence investment, intensifying debate over whether current valuations signal transformative growth or an emerging bubble. While Nvidia’s results have underscored its central role in powering AI systems, some analysts warn that today’s exuberance may not be sustainable, reflecting wider uncertainty about the economy and political landscape.

Investor jitters are growing in the US as AI reshapes expectations, but China's markets have so far reacted with caution rather than panic. Artificial intelligence is already reshaping industries and markets, even though artificial general intelligence (AGI) has yet to be achieved. China's tech stocks have largely held steady amid recent domestic AI advancements.

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Despite a hot domestic market, South Korean investors have increased purchases on Hong Kong and mainland exchanges this year. Data shows they bought US$507 million in Hong Kong-listed shares and US$154 million in mainland-listed shares, focusing heavily on AI and semiconductor names.

South Korean stocks closed slightly higher on January 30, extending their winning streak to four sessions and hitting a new record high as investors bought artificial intelligence shares despite bubble concerns. The advance was capped by U.S. President Donald Trump's vow to impose higher tariffs on South Korea. The Korean won fell 13.2 won to 1,439.5 against the U.S. dollar.

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New share listings by Chinese technology firms in Hong Kong have delivered above-average returns on their debuts so far in 2026, as investors bet on Beijing’s push for technology self-reliance amid a challenging macro environment. The outperformance underlines that the tech self-reliance trade is extending its momentum into 2026, the first year of China’s latest five-year development plan, which emphasises artificial intelligence and other cutting-edge technologies.

South Korea's leading business lobbies called for aggressive investments in artificial intelligence (AI) to secure global competitiveness in 2026. Chey Tae-won, chairman of the Korea Chamber of Commerce and Industry (KCCI), emphasized building swift investment capabilities in AI and green sectors amid challenges like low growth and geopolitical uncertainties. Other groups highlighted the need for eased regulations and stronger public-private cooperation.

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Alibaba chairman Joe Tsai has credited China’s advantages in artificial intelligence to investments in its power grid and open-source models. He stated that such massive investments have provided ample supply and low costs for the energy-intensive AI sector. China’s industrial depth highlights vast potential for AI applications, Tsai said.

 

 

 

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