Goldman Sachs on TAIEX: Tech Leads 7% Rally to Record Highs on Strong Institutional Flows; Target Raised to 45,000
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Goldman Sachs raised its 12-month TAIEX target to 45,000 points, up from the previous 40,000, driven entirely by earnings upgrades as the index rallies to record highs. The Taiwan market recently surged 7% with technology stocks leading the gains, supported by robust capital inflows from both foreign and domestic institutional investors. The target adjustment reflects the strong profit momentum within the technology sector. Fundamental data reinforces this optimistic view: 770 listed Taiwanese companies, representing 74% of the total market capitalization, have reported 1Q26 financial results showing a 60% year-over-year and 24% quarter-over-quarter surge in earnings, with 56% of these firms beating expectations. Additionally, the firm's earnings revision leading indicator suggests that further earnings upgrades are forthcoming for Taiwanese equities, although the pace of upward revisions may moderate. This ongoing fundamental strength is mirrored by top-line performance, as listed company revenue expanded by 39% year-over-year in April, accelerating from 34% in March. This broad-based revenue acceleration was primarily driven by the technology and commodities sectors, solidifying the earnings-driven bullish case for the market.
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