AI Boom Lifts Taiwan, South Korea in Global Market Rankings

The global artificial intelligence boom is reshaping equity markets, pushing Taiwan and South Korea ahead of several major European economies, Bloomberg News reported.

The shift is driven largely by gains in major semiconductor companies, including Taiwan Semiconductor Manufacturing Co. (TSMC) and South Korea’s Samsung Electronics and SK Hynix. (Photo: SK Hynix)

Taiwan’s stock market, now valued at nearly $4.3 trillion, has surpassed the United Kingdom, Europe’s largest market, according to Bloomberg data. South Korea is close behind, trailing by about $140 billion.

The shift is driven largely by gains in major semiconductor companies, including Taiwan Semiconductor Manufacturing Co. (TSMC) and South Korea’s Samsung Electronics and SK Hynix.

European markets, by contrast, are more heavily weighted toward financial stocks and have not benefited as directly from the surge in AI investment.

“The rapid rise of Korea and Taiwan reflects the long-term importance of semiconductors as a key input to economic activity,” said Ian Samson, a portfolio manager at Fidelity International.

Recent trade data underscores the trend. Taiwan’s export orders rose at their fastest pace in 16 years, while South Korea’s exports increased more than 40% for a second consecutive month, driven largely by chip demand.