The market awaits the US-China mediation, focusing on AI themes. Weak US economic data has strengthened expectations for an imminent rate cut by the Federal Reserve, resulting in most Asian markets rising on May 5. Additionally, both sides might benefit from the "Trump-Xi birthday" effect, hinting at potential dialogue between their leaders. TSMC (2330) rose by 8 TWD despite not stabilizing above the NT$1000 mark, but market sentiment remains positive for tech stocks.

According to a report by Cathay Futures, the market anticipates a shift in fundamentals from the trade negotiations, which could attract funds back to the market. Short-term focus is on tech stocks such as Nanya Technology (2408), Jihua (3533), Kinpo Electronics (2368), and Unimicron (3037). The report highlights a favorable outlook for AI-related stocks, particularly as Broadcom (AVGO) is about to launch a new generation of data center chips that will further consolidate its core position in AI infrastructure.

This week, Broadcom's earnings report is expected to drive the performance of US semiconductor stocks, which may also lift Taiwan's stock market under the bright prospects of AI stocks. Analysts suggest a bullish strategy as the weighted index could see upward correction being lower compared to other Asian stocks. Furthermore, Nanya Technology (2408) reported a high revenue for May, the highest in nearly 11 months, driven by increased demand for AI servers. Jihua (3533) is expected to benefit from upgraded product specifications for AI servers, boosting average prices and future operations. Kinpo Electronics (2368) sees strong demand for AI servers enhancing order momentum, while Unimicron (3037), as a leading IC substrate manufacturer in Taiwan, might see increased pricing for BT substrates due to extended delivery times.