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AI drives biggest foreign inflows into Taiwan shares in two decadesInvestors overseas bought a net $2.77 billion of Taiwan shares on Tuesday, the most they have since December 2005, as per data complied by Bloomberg. The investment is also the sixth-consecutive day of buying of foreign funds.By CNBCTV18.com February 25, 2026, 11:44:07 AM IST (Published)2 Min ReadGlobal funds snapped up Taiwanese shares in their largest single-day buying spree in 20 years, underscoring their belief that chipmakers will remain beneficiaries of the AI boom, even as broader markets witness growing disruption fears.

Investors overseas bought a net $2.77 billion of Taiwan shares on Tuesday, the most they have since December 2005, as per data complied by Bloomberg. The investment is also the sixth-consecutive day of buying of foreign funds.

The surge comes after global equities wobbled following a report from little-known Citrini Research that warned of a dystopian-like wave of AI-driven disruption. While investors have been steering clear of sectors seen as vulnerable, they’re doubling down on chipmakers viewed as the backbone of the AI buildout.

Taiwan’s logic-heavy market dominated by advanced semiconductor producers is seen as a relative safe haven in the AI “scare trade.”

“Taiwan is the home of the global AI supply chain,” said Vey-Sern Ling, managing director at Union Bancaire Prive, Bloomberg reported.  “Its companies and stock market will continue to benefit as long as investors believe that AI is disruptive and hence indispensable to our future.”

At the current pace, Taiwan is on track for roughly $7 billion in foreign inflows this month, a contrast to the roughly similar amount that has been pulled from memory chip-focused South Korea over the same period.

The growing dominance of Taiwan Semiconductor Manufacturing Co. has underpinned the broader market, with TSMC now accounting for about 45% of the Taiex index, roughly triple its weighting a decade ago. The stock has surged about 30% this year, repeatedly notching fresh record highs.

With inputs from BloombergContinue ReadingTagsglobal marketsStock marketTaiwan