Taiwan Overtakes India as World’s Fifth-Largest Stock Market Cap Driven by AI and Chip Rally

27/05/2026

Taiwan Overtakes India as World’s Fifth-Largest Stock Market Cap Driven by AI and Chip Rally

TAIPEI, May 27: Taiwan has overtaken India to become the world’s fifth-largest stock market by capitalisation, driven by a sharp rally in technology and semiconductor-linked equities, according to market data cited by the Economic Times.

On Monday (May 25), Taiwan’s total market capitalisation stood at $4.95 trillion, surpassing India’s $4.92 trillion, marking a significant shift in global equity rankings.

The United States, China, Japan, and Hong Kong remain the four largest markets ahead of Taiwan, while South Korea has been ranked seventh, with a market value of $4.54 trillion.

Analysts attributed the surge in Taiwan’s market—up an estimated 52%—to strong global investor appetite for artificial intelligence-related stocks and its dominant semiconductor supply chain, particularly firms such as Taiwan Semiconductor Manufacturing Company, which reportedly saw a 45% gain.

South Korea’s market performance has also been boosted by heavyweight technology firms, including Samsung Electronics and SK Hynix, both benefiting from global demand for advanced chips and memory products.

In contrast, foreign portfolio investors have reportedly reduced exposure to India since October 2024, citing concerns over slower earnings growth, premium valuations, and limited participation in the global AI supply chain.

Market observers say the latest shift reflects a broader realignment in global capital flows, with semiconductor and AI-driven economies gaining stronger investor preference.