Taiwan's stock market bounced back on Friday after an early dip, a good sign for chip investors betting the AI boom still has room to run.

• The Taiex fell below 45,000 in the morning, then recovered as bargain hunters stepped in.
• TSMC led the rebound, and since it makes up more than 40% of the market's value, its bounce lifted the whole index.
• Buyers stayed confident because TSMC expects sales to grow more than 40% next year on AI demand.
• Memory chipmakers rose on a worldwide shortage, while shipping, plastics and bank stocks also gained.
• Trading volume stayed light as investors waited for Fed Chairman Kevin Warsh's speech at Jackson Hole next week.

Outlook: Taiwan's market is likely to stay choppy until Warsh's Jackson Hole remarks give a clearer read on U.S. interest rates.