The boom in custom AI chips is back, Taiwan stocks have hit a record high, and that is good news for investors in chip design and the AI supply chain.

• Initiating coverage of Global Unichip (GUC) for the first time, a foreign brokerage assigned a "buy" rating and a target price of NT$12,000, forecasting that revenue will double this year and that earnings per share will grow eightfold by 2028.
• The positive case rests on agentic AI pushing up computing costs and lifting demand for ASICs. GUC stands to benefit most from its advanced packaging technology and its partnership with TSMC, as well as from orders for in-house chips from cloud giants such as Google and Microsoft. The company has also just raised NT$65 billion to bolster its war chest.
• The TAIEX broke through the 48,000 mark to set a new closing high, and Taiwan's market capitalisation has climbed to fourth largest in the world. TSMC rose in tandem.
• Rotation among funds has been sharp: AUO fell more than 6% a day after hitting its limit up, and UMC also weakened after surging more than 20% in five days. The risk of chasing prices higher has clearly increased.
• Elsewhere: Binance is investing US$100 million in Circle, the issuer of the USDC stablecoin, and has renewed their partnership for another five years; Taiwan Cement will acquire Ukraine's second-largest cement group for no more than €750 million; and veteran investor Howard Marks argues that dumping large amounts of stock out of concern over US fiscal problems is the wrong decision.

Outlook: the AI chip theme should stay strong in the near term, but individual stocks have already run up a long way and rotation is rapid, so volatility at these levels and profit-taking pressure will grow accordingly.