The Taiwan stock market has been facing significant variables recently. Following the Financial Supervisory Commission's announcement to lift the short-selling ban this week, the market has risen by 4260.48 points, a 24.5% increase, recovering to 21652.24 points since the low on April 9.

However, President Trump has once again commented on EU tariffs and Apple's return to manufacturing in the U.S. Investment firms indicate that this week the focus will be on Nvidia's earnings report. Despite this, foreign futures short positions have accumulated over 40,000 lots. With the Dragon Boat Festival approaching and uncertainties surrounding tariff policies, the recommendation remains to buy on dips rather than chase highs.

PGIM's high-growth fund manager, Liao Ping-kun, noted that this rebound has not only filled the gap left by tariffs but also shifted market sentiment from conservative to optimistic. Although recent talks of Trump's tax cuts have raised concerns about the worsening U.S. debt deficit, the overall market still maintains a high-level fluctuation, particularly as the index reaches a significant resistance level near the yearly average, with decreasing trading volume.

Liao emphasized that this year's COMPUTEX has provided many insights into the future of AI, especially in the robotics sector. Nvidia's CEO, Jensen Huang, pointed out that the deep integration of AI and robotics will redefine the global economic structure.

Market sentiment towards Nvidia's upcoming earnings announcement on the 28th is optimistic, with several brokerages issuing buy ratings, using it as a barometer for AI trends while monitoring the impact of U.S.-China trade policies on future operations.

Liao also analyzed that the technical outlook for the Taiwan stock market remains in a high-level fluctuation, with a higher likelihood of bullish trends following the 520 deadline in June during the annual shareholder meeting season. However, caution is advised due to foreign futures short positions exceeding 40,000 lots and uncertainties regarding tariffs leading up to the Dragon Boat Festival. In terms of stock selection, he recommends focusing on high-growth sectors including semiconductor manufacturing, Edge AI, IC design, IP stocks, communication technology, and optoelectronics, while also keeping an eye on high-dividend stocks and domestic consumption sectors as the shareholder meeting season approaches.