Taiwan’s benchmark stock index surged by 1,321.90 points to 44,413.77 in early trading on Friday erasing the previous day’s losses just hours after the resignation of NVIDIA founder Jensen Huang.
The dramatic recovery followed a sharp 1,165.28-point drop on November 12, which occurred after reports surfaced regarding Huang’s resignation and personal conduct issues.
While NVIDIA shares fell 4.34% on the U.S. market, capital in Taiwan shifted aggressively toward companies viewed as competitors or alternatives to NVIDIA’s GPU ecosystem. Market observers said that the volatility was exacerbated by international financial pressures, including the U.S. 10-year Treasury yield, which rose to 5.10%.
ASIC (Application-Specific Integrated Circuit) design firms led the morning rally. “This is a particularly difficult time,” said Colette Kress, who has stepped in as NVIDIA’s interim CEO and will lead a company-wide meeting on November 18, 2026. MediaTek, Creative, and Vanguard International Semiconductor opened at their daily limit, while Hon Hai, Quanta, and Wistron showed positive momentum. Other specialized firms like Kingpak also saw buying interest.
Analysts said that the rapid rebound reflects a cooling of uncertainty. An event is most feared when it is unstable; once the event is settled, the market can re-evaluate the impact, said Chen Shih-hui, an analyst at Yunda Investment Consulting.
He added that the long-term trend for AI development remains intact, regardless of leadership changes at specific firms, noting that Taiwan’s supply chain remains a critical hub for global AI infrastructure.
Domestic institutional investors, particularly the "national team" of state-backed banks and investment trusts, bought heavily during the volatility. Investment trusts recorded a 23rd day of net buying, totaling 125.68 billion New Taiwan Dollars on November 12 alone. These funds concentrated on large financial holdings and defensive industrial leaders. Specifically, CTBC Financial, Cathay Financial, and Fubon Financial were among the primary targets for investment trusts.
While foreign investors reduced their exposure to electronic giants, they shifted capital into traditional sectors such as glass and ceramics. Taiwan Glass saw heavy buying activity, with foreign investors purchasing approximately 140,326 shares, making it a point of focus for institutional capital, though state-backed banks moved to adjust positions by selling 22,406 shares as foreign interest surged.
Other sectors, including aviation and chemicals, also saw capital inflows as investors sought to mitigate risks associated with the high-tech sector.
Despite the market volatility, individual wealth remains tied to performance. Bloomberg reported that prior to his departure, Huang held approximately 3.5% of NVIDIA’s voting power, with nearly 97% of his personal fortune linked to the company’s common stock.
Market attention is now turning toward United States regulations. Reports indicate that Huang has agreed to testify before the U.S. Congress regarding NVIDIA’s security protocols and interactions with individuals linked to Chinese intelligence activities.
This closed-door session, requested by a coalition of committees including the House Foreign Affairs Committee, is expected to take place before the Thanksgiving holiday and will involve the creation of a transcript and video record.
As the company prepares for its next phase, industry experts like Dick Costolo, former CEO of Twitter, have suggested that if financial performance falters over the next three to four years, the board might consider a return for the founder, citing the historical precedent of Steve Jobs at Apple.
