Taiwan's stock market capitalization surpasses India to become the fifth largest in the world, with TSMC's annual growth of 45% leading the AI investment cycle

Taiwan's stock market capitalization officially surpasses India, rising to $4.95 trillion and ranking as the fifth-largest stock market in the world.
(Background: Bitcoin consolidates at $76k, ETF declines for six consecutive days, losing $1.26 billion, market awaits the first FOMC meeting on 6/17)
(Additional background: Breaking news! Foreign media reports that the US-Iran ceasefire agreement has been extended by 60 days! Iran promises to "clear mines" within 30 days to reopen the Hormuz Strait)

Today (26th), Taiwan's stock market capitalization officially exceeds India, rising to $4.95 trillion, jumping to the fifth-largest stock market globally. Data shows that Taiwan is currently only behind the United States, China, Japan, and Hong Kong, ranking fifth worldwide.

Taiwan Semiconductor Manufacturing Company (TSMC) is the core engine of this surge. Since the beginning of the year, TSMC's stock price has risen 45%, with a market value approaching $2 trillion, ranking as the sixth-largest company globally, behind tech giants like NVIDIA and Apple; its weight in Taiwan's weighted index exceeds 42%, indicating a highly concentrated market.

Q1 2026 financial report shows TSMC's revenue reached $35.7 billion (up 35% year-over-year), with net profit soaring 58%, hitting a record high, solidifying its key position in the AI supply chain as a leading foundry.

AI benefits vs. oil price shocks

Bloomberg analysis points out that the surge in Taiwan's market value and the pressure on India's stock market reflect two main themes dominating the global financial markets in 2026.

First, the Iran war has driven oil prices sharply higher, severely impacting the economic growth prospects of energy-import-dependent countries like India; second, market optimism about AI continues to ferment, boosting global tech stocks, with semiconductor manufacturing hubs like Taiwan and South Korea especially benefiting.

Franklin Templeton fund managers state: "The rise in Taiwan's market value essentially reflects its high concentration in the tech hardware industry, which is currently at the core of the AI investment cycle. Markets lacking in tech hardware sectors are gradually being overtaken by tech hardware-focused markets like Taiwan and South Korea."

Regulatory easing opens up funding channels for TSMC

New regulations further enhance TSMC's capital attractiveness. Taiwan's financial regulators raised the limit on domestic funds investing in a single stock last month. Funds that only invest in Taiwanese stocks, if a company's weight exceeds 10% on the Taiwan Stock Exchange, can hold up to 25% of that company's net assets, significantly higher than the previous 10% limit.

Currently, only TSMC meets this condition. JPMorgan estimates that this adjustment could bring in over $6 billion in incremental capital flows into the Taiwanese market.