TSMC’s AI Rally Rewrites the Global Market Map

Taiwan's stock market has overtaken India's to become the world's fifth-largest equity market, driven primarily by TSMC's 49% surge in 2026 fueled by AI chip demand. TSMC now accounts for 42% of Taiwan's benchmark index, with the company posting a 58% jump in Q1 2026 net profit and raising full-year revenue growth forecasts above 30%. While this concentration reflects strong AI hardware demand and regulatory tailwinds, it also presents concentration risk as Taiwan's market cap heavily depends on a single chipmaker and one demand cycle.