This week, investors should pay attention to four major variables: geopolitical situations, exchange rates, Super Central Bank week, and tariff issues. Last Friday (13th), the Taiwan stock market dropped by 214.87 points to close at 22072.95 points due to the conflict between Israel and Iran. Nevertheless, the local stock market shows signs of potential recovery.

According to PGIM's fund manager 廖炳焜, there are still uncertainties in both domestic and international markets, including Trump's re-emerging tariff discussions and the tense situation in the Middle East that affect investor sentiment. Domestically, the impact of the rising exchange rate in May is gradually becoming evident across various industries, while technically, the index remains in a bullish trend, but the leading wafer manufacturer's stock performance has been lackluster.

In the short term, industry experts hold an optimistic view on the AI sector, focusing on four stocks: 双鴻 (3324), 旭隼 (6409), 金像電 (2368), and 眾達 KY (4977).

廖炳焜 further notes that as the recent market rebound approaches its peak, the index may face corrections. However, under stable capital flow conditions, significant declines are not anticipated. This week also marks Super Central Bank week, with global attention on the possibility of the U.S. rate cut, and the local central bank will hold its second-quarter meeting on the 19th.

Institutions remain optimistic about the long-term outlook of the AI industry, expecting the launch of new technologies to create opportunities in the ASIC market. With assembly plants boosting their capacities, next year's demand for related products is predicted to surge. Given the increasing difficulty of operations in the second half of the year, experts recommend a diversified portfolio focusing on wafer manufacturers and essential goods.