Taiwan Stocks Face Potential Further Decline, Netizen Cites Three Key Reasons

Concerns are mounting over the stability of Taiwan's stock market, with one netizen identifying three key factors that could drive the index down further. The user pointed to China's increasing domestic memory chip production, which could flood the market and impact profitability, and OpenAI's repeated postponement of its IPO, suggesting potential undisclosed risks.

The netizen also highlighted the strong correlation between Taiwan's stock market and U.S. technology stocks. A significant correction in the U.S. tech sector could inevitably lead to a downturn in Taiwan. Based on these factors, the user predicted that a drop to 38,000 points for the index is only a matter of time.

This prediction ignited a lively discussion on the PTT forum. Some users questioned the "cabbage price" assertion for Chinese memory chips, noting that even Chinese manufacturers like Changxin don't sell at such low prices. Others dismissed the OpenAI IPO delay as old news, as it was widely expected to be pushed to next year.

However, many agreed with the bearish sentiment. Some commenters suggested that a drop to around 39,000 points would be a reasonable correction, while others offered even more pessimistic forecasts, with predictions ranging from 32,000 down to 18,000 points. A few even speculated about a market crash akin to the 2024 July trend or a more severe correction if the current AI bubble were to burst.