Taiwan Glass Stock Surges on Foreign Buying Amid AI Demand; Investors Eye Potential Sell-off

Taiwan Glass Industry Corporation (1802) has experienced a significant stock price increase, climbing from around NT$60 to a recent high. This surge is attributed to the company's strong performance in high-end glass fiber products, particularly those catering to the growing demand driven by AI technology.

Foreign institutional investors have shown sustained interest, marking six consecutive days of net purchases totaling over 110,000 shares. Domestic proprietary traders have also been net buyers for the same period, acquiring 9,905 shares. This consistent buying activity had led many retail investors to anticipate further record highs for the stock.

However, the stock saw a sharp decline on June 23, falling 5.3 yuan or nearly 7% to NT$71.3 by 10:21 AM, with over 84,000 shares traded. This downturn has sparked concern among investors, with some expressing fears of foreign investors "dumping" shares at high prices and engaging in "cutting leeks" (a colloquial term for exploiting inexperienced investors).

Chairman Lin Po-feng previously stated at a shareholders' meeting that the company plans to invest NT$2 billion this year to expand production capacity for Low DK (low dielectric constant) and Low CTE (low coefficient of thermal expansion) products. The company anticipates that demand for these high-end products will remain strong and outstrip supply until the end of next year. Analysts note that the stock's recent gains have exceeded 10% since foreign and proprietary traders began their buying spree at NT$64. Given the fragmented ownership and common "overnight trading" strategies employed by foreign investors and major players, investors are advised to wait for market consolidation before entering, to avoid short-term losses.

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Benefiting from AI demand, we will continue to increase the proportion of high-end glass fiber products. We will invest another 2 billion yuan this year to expand the production capacity of Low DK and Low CTE products. It is estimated that the situation of product supply exceeding demand will continue until the end of next year.