Taiwan's chip testing and packaging firms are riding a wave of AI orders, a positive for investors but with signs big money has been quietly selling.

• King Yuan Electronics, a key testing supplier for Nvidia GPUs, jumped toward NT$278 as new AI chips take about 50% longer to test, letting it charge more.
• July sales hit a record and first-half profit was the best ever, and foreign brokers see the stock reaching NT$370 with next year's earnings near NT$15-16 a share.
• Big institutions have been net sellers in recent sessions, so the rally could stall into overhead selling pressure if trading volume dries up.
• MediaTek locked limit-up after word that Nvidia and other AI infrastructure partners took most of its $3.9 billion convertible bond deal.
• Taiwan's main index pushed past 47,000 and the local dollar strengthened as dovish Fed signals knocked the dollar index below 99.

Outlook: AI-driven demand should keep supporting Taiwan's chip stocks near record highs, but thin volume and institutional selling leave room for a pullback.