Taiwan overtakes India as fifth-largest stock market

Taiwan has overtaken India to become the world's fifth-largest stock market by total market capitalization, according to data compiled by Bloomberg. As of Monday, the total market value of listed Taiwanese companies reached approximately $4.95 trillion, narrowly surpassing India's $4.92 trillion. The shift is primarily attributed to a surge in the share price of Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, driven by soaring global demand for artificial intelligence hardware.

TSMC's stock has risen approximately 49% this year, fueled by its dominant position in manufacturing advanced semiconductors used in AI systems, data centers, and high-performance computing. The company now accounts for roughly 42% of Taiwan's benchmark stock index, an unusually high level of concentration for a major equity market. This rally has propelled Taiwan's overall market value, placing it behind only the United States, mainland China, Japan, and Hong Kong in the global rankings.

The change underscores how investor capital is currently flowing toward economies with significant exposure to AI-linked manufacturing. Taiwan's market structure, heavily weighted...