Taiwan's stock market has staged a sharp rebound driven by AI demand, a strong run for investors but one that leaves prices close to record highs and vulnerable to a pullback.

• The main index climbed back over 47,000 after bottoming out in late July, now less than 1% below its all-time closing high.
• Actively managed Taiwan stock ETFs beat the broad market, with most of them ahead of the index and the best performer up about 36%.
• AI is the engine: chip foundries, advanced packaging, AI servers, circuit boards and cooling parts keep Taiwan at the center of the global buildout.
• Foreign investors piled in with one of their biggest single-day buying sprees ever, and trading volume jumped.
• Ordinary people are less upbeat — most expect their daily costs to rise over the next year, and memory chip prices are surging, pointing to more inflation in electronics.

Outlook: The market looks set to test its record high, though shortages in the AI supply chain and rising consumer prices are the main things that could spoil the run.