Taiwan panel maker AUO is soaring for a second straight day on rumors it is moving into AI chip packaging, a big win for shareholders and foreign investors who have piled in, though the story rests on unconfirmed reports.

• Rumors say Intel wants to partner with AUO on Micro LED substrates for advanced packaging, and that TSMC may buy AUO's plant in Taichung's science park.
• Neither deal has been confirmed by the companies, but the idea of a panel maker joining the AI chip supply chain has sent money rushing into the stock.
• Foreign investors have been heavy buyers for five straight days, and AUO's trading volume was the highest in the entire Taiwan market.
• AUO has been working for years to escape the boom-and-bust panel business by building glass-substrate technology used in high-end chip packaging.
• The rally comes as Taiwan's stock market pushes toward 48,000, with MediaTek hitting record highs and AMD's market value topping $1 trillion.

Outlook: AUO's rally hinges on whether the Intel and TSMC deals turn out to be real; the underlying panel business still faces slowing PC and monitor demand in the second half of the year.