Taiwan ETF Hits New High on AI Supply Chain Gains

The Mega-Rich Taiwan Harvest ETF (00996A) has hit a new record high, continuing its upward trend from the previous week. The fund's top 10 holdings have precisely targeted stocks that have seen significant gains, propelling the ETF to close at NT$16.06 last Friday, a new all-time high. It further advanced by 1.62% today, closing at NT$16.32, making it a focal point in the market.

Wang Zhongliang, manager of the Mega-Rich 00996A, noted that the global tech giants' arms race is intensifying with the upcoming next-generation AI server architecture. AI capital expenditure remains high, and market funds are undergoing structural adjustments. Citing a Morgan Stanley research report, Wang indicated that "non-wafer components" such as memory, PCBs (printed circuit boards), and passive components are poised to be key beneficiaries for active stock selection in the next phase.

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As NVIDIA's next-generation AI server architecture is poised to be launched, the arms race among global tech giants has entered a white-hot stage, and AI capital expenditure continues to remain high, with market funds undergoing structural adjustments.

Morgan Stanley's report, as quoted by Mega-Rich Investment Trust, shows that while GPUs still represent the largest absolute cost increase, their growth rate is only 57%. In contrast, Taiwan's peripheral supply chains are experiencing more robust growth. Memory products lead the cost increase with a staggering 435% rise, driven by a severe supply-demand imbalance for high-bandwidth memory. High-end PCB manufacturers are also seeing increased average selling prices and gross profit margins due to upgrades in materials for high-speed transmission and multi-layer designs. Other components like MLCC passive components and network communication chips have also seen higher price increases than GPUs themselves.

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non-wafer components such as memory, PCBs (printed circuit boards) and passive components can be the key beneficiaries for active stock selection in the next wave of opportunities.

The ETF's top 10 holdings include TSMC, Yageo, Zhen Ding Technology, MediaTek, Taiflex Scientific, Delta Electronics, Lite-On Technology, Nanya Technology, Nan Ya PCB, and Crystek Corporation. The fund emphasizes its forward-looking strategy, not only participating in the growth of wafer foundries and ASIC design but also precisely positioning itself in supply chains with significant cost increases and in the passive component industry with upgrade potential.

Mega-Rich Investment Trust advises investors to focus on the fundamental trend of "clear direction in AI infrastructure and broad benefits for Taiwan's supply chain." They recommend regular fixed investments or phased buying strategies to fully grasp the core beneficiary companies of the new AI era, especially as market funds are rapidly rotating.

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The AI infrastructure direction is clear, and Taiwan's supply chain is benefiting broadly. Every pullback is a suitable time for investment. Investors are advised to adopt regular fixed investments or phased buying strategies to fully grasp the core beneficiary companies of the new AI era.