2025 Taiwan AI Concept Stock Investment Guide | Profit Opportunities from Hardware Infrastructure to Application Ecosystems

Why Are Taiwan’s AI Concept Stocks Gaining So Much Attention?

Since the wave of generative AI has swept the globe, listed companies related to artificial intelligence have become the focus of the capital market. AI concept stocks cover a wide range, from chip design and server manufacturing to cloud services, forming the core infrastructure of the entire artificial intelligence industry.

The so-called AI concept stocks refer to publicly listed companies whose business is closely related to artificial intelligence technology. These companies may focus on customized chip development, server supply, data center construction, or providing AI software and cloud platform services. Investing in these stocks essentially means participating in the industry upgrade and economic transformation driven by the AI technology revolution.

The Global AI Market Continues to Expand | Taiwanese Companies Seize Key Opportunities

According to the latest research data from IDC, global enterprise investment in AI solutions and technologies will reach $307 billion by 2025. More notably, by 2028, the total expenditure on AI applications, infrastructure, and related services is expected to surpass $632 billion, with a compound annual growth rate (CAGR) of 29%.

In this growth wave, the expenditure on servers will account for over 75% by 2028, becoming the core hardware supporting AI technology implementation. This data fully reflects that the AI industry still has vast development potential, and Taiwan’s advantages in hardware manufacturing and chip design are crucial for participating in this global competition.

Institutional investors’ holdings changes also confirm market optimism. For example, Bridgewater Associates significantly increased its holdings of AI-related targets in its Q2 2025 13F report, including core companies like NVIDIA, Alphabet, and Microsoft. This indicates that capital is densely deploying in key nodes of the computing power, chips, and cloud computing supply chain.

Leading Taiwanese AI Concept Stocks Show Strong Performance | Who Are the Long-term Investment Targets?

Quanta Computer (2382) | Leader in AI Server OEM

Quanta Computer has successfully transformed from a notebook OEM to actively entering the AI server market. Its subsidiary, Cloud Network, specializes in servers and cloud solutions, successfully penetrating global hyperscale data centers, with major clients including NVIDIA and international cloud service providers.

In 2024, Quanta’s revenue reached NT$1.3 trillion, with the proportion of AI servers continuously rising. Entering 2025, driven by a significant increase in AI server shipments, its Q2 revenue broke NT$300 billion, up over 20% year-on-year, setting a new record for the same period. Analysts are optimistic that Quanta will maintain long-term growth momentum driven by AI and cloud trends, with an average target price between NT$350 and NT$370.

Realtek Semiconductor (3661) | Leading ASIC Chip Designer

Realtek is one of Taiwan’s most representative AI concept stocks, focusing on customized chip design services for clients including US cloud giants and high-performance computing leaders. In 2024, its full-year revenue reached NT$68.2 billion, with a growth rate exceeding 50%, demonstrating strong growth driven by AI demand.

In Q2 2025, Realtek’s quarterly revenue surpassed NT$20 billion, doubling compared to the same period last year. Gross margin and net margin continue to improve, benefiting from mass production of large AI client projects and orders for next-generation AI accelerators. Foreign investors are optimistic about its long-term growth potential, with an average target price between NT$2,200 and NT$2,400.

Delta Electronics (2308) | Key Supporter of AI Infrastructure

Delta Electronics is a global leader in power management and power solutions, actively entering the AI server supply chain in recent years. It mainly provides high-efficiency power supplies, cooling, and cabinet solutions. In 2024, its full-year revenue was about NT$420 billion, with the proportion of data center and AI-related business continuously increasing.

In Q2 2025, revenue was about NT$110 billion, up over 15% year-on-year, benefiting from the ongoing expansion of AI server and data center infrastructure demand, with gross margin remaining high.

MediaTek (2454) | Accelerating Mobile AI Chip Deployment

MediaTek is one of the top ten fabless semiconductor design companies globally. With the rise of edge computing and generative AI, MediaTek is actively advancing its AI chip strategy. Its Dimensity series mobile platforms have integrated enhanced AI computing units, and it collaborates with NVIDIA to develop automotive and edge AI solutions.

In 2024, revenue reached NT$490 billion, with gross margin improving quarter by quarter. In Q2 2025, revenue was about NT$120 billion, up approximately 20% year-on-year, mainly driven by increased market share in high-end mobile chips and rising demand for AI smart devices. External targets price ranges from NT$1,300 to NT$1,400.

ASUS (2327) | Liquid Cooling Solution Provider

ASUS is a leading Taiwanese cooling solution provider. As AI server chips’ power consumption surpasses the kilowatt level, traditional air cooling has become a bottleneck. ASUS leverages its advanced liquid cooling technology to secure a position in the global AI server supply chain. In 2024, revenue reached NT$24.5 billion, with an annual growth rate over 30%.

From Q2 2025 onwards, benefiting from cloud service providers accelerating the adoption of liquid cooling solutions, shipments of water-cooled modules for AI servers have surged. Many foreign institutional investors set targets above NT$600.

US AI Concept Stocks | Global Tech Giants Leading the AI Era

NVIDIA (NVDA) | Absolute Leader in AI Computing

NVIDIA’s GPUs and CUDA software platform have become industry standards for AI model training and inference. In 2024, revenue reached $60.9 billion, with an increase of over 120% year-on-year. In Q2 2025, revenue hit a new high of about $28 billion, with net profit increasing over 200% annually.

The main drivers are strong demand from cloud service providers and enterprises for Blackwell architecture GPUs. Analysts expect that as AI applications shift from training to inference and gradually penetrate enterprise and edge computing, the demand for high-performance computing solutions will continue to grow exponentially.

Broadcom (AVGO) | Indispensable in AI Infrastructure

Broadcom is a leading semiconductor and infrastructure software company, playing a key role in AI chips and network connectivity. In fiscal year 2024, revenue was $31.9 billion, with AI-related product revenue rapidly increasing to 25%.

In Q2 2025, revenue grew 19% year-on-year, benefiting from cloud providers accelerating AI data center deployments, with demand for customized chips and high-performance network equipment continuing to rise. Many foreign institutional investors target over $2,000.

AMD (Advanced Micro Devices) | Challenger in AI Accelerators

AMD is an innovator in the AI accelerator market, with its Instinct MI300 series and advanced CDNA 3 architecture successfully entering the market dominated by NVIDIA. In 2024, revenue reached $22.9 billion, with data center business growing 27% annually.

In Q2 2025, revenue increased 18% year-on-year, driven by the adoption of MI300X accelerators by major cloud providers. Market analysis indicates that as customer demand for alternative solutions increases, AMD’s CPU+GPU integrated advantage is gradually expanding its market share. Target prices are mostly above $200.

Microsoft (MSFT) | Enterprise AI Transformation Platform

Microsoft leads the enterprise AI transformation platform, establishing an ecosystem through Azure AI cloud and Copilot enterprise assistants. In fiscal year 2024, revenue reached $211.2 billion, with Azure and cloud services growing 28%, and AI services contributing over half of the growth.

In FY2025, intelligent cloud business first exceeded $30 billion. As Copilot is deeply integrated into Windows, Office, and Teams used by over 1 billion users worldwide, its monetization potential will continue to be unleashed. Many institutions see Microsoft as the most certain beneficiary of the “enterprise AI popularization” wave.

How to Invest in AI Concept Stocks | Stocks, Funds, or ETFs?

Besides directly purchasing individual stocks, investors can participate in the growth of the AI industry through various channels. Stock investments carry concentrated risks but have lower transaction costs; equity funds offer diversification but higher management fees; ETFs provide low-cost passive index tracking.

Investors can combine dollar-cost averaging to enter gradually, reducing the average purchase price. According to Morningstar data, as of the end of Q1 2025, the global assets in AI and big data funds exceeded $30 billion, reflecting ongoing high market interest in AI-themed investments.

Whether choosing stocks or funds, proper diversification is an important long-term strategy to participate in AI growth.

Investment Outlook for AI Concept Stocks from 2025 to 2030 | Long-term Bullish, Short-term Volatility

Long-term Trend Judgment

As large language models, generative AI, and multimodal AI advance rapidly, the demand for computing power, data centers, cloud platforms, and dedicated chips will continue to rise. In the short term, chip and hardware suppliers like NVIDIA, AMD, and TSMC will still be the biggest beneficiaries.

In the medium to long term, AI applications in industries such as healthcare, finance, manufacturing, autonomous vehicles, and retail will gradually be implemented, transforming into actual revenue for many enterprises.

Risks and Variables

On the capital side, although AI themes remain a focus, stock prices are inevitably affected by macroeconomic conditions. If the Federal Reserve and other central banks adopt loose monetary policies, it will benefit high-valuation tech stocks; conversely, high interest rates may compress valuations. AI concept stocks are sensitive to news and can experience significant short-term volatility.

Policy and regulation are also important variables. Governments worldwide generally see AI as a strategic industry and may increase subsidies or investments in infrastructure. However, issues like data privacy, algorithm bias, and copyright regulation could lead to stricter laws.

Risks Investors Should Watch Out For

Industry Uncertainty: AI technology develops rapidly, and even seasoned investors may find it hard to keep up, risking being caught in hype-driven stock swings.

Unproven Companies: Some AI companies are young with weak fundamentals, carrying higher operational risks compared to well-established firms.

AI-Related Risks: As the field expands, public opinion, regulations, and other factors may impact AI stock performance in unexpected ways.

Conclusion | Investment Strategies for Taiwan’s AI Concept Stocks

AI concept stocks from 2025 to 2030 will feature a “long-term bullish, short-term volatile” pattern. Investors wishing to participate in AI growth should prioritize chip and server infrastructure providers or select companies with tangible applications.

For general investors, a more conservative approach is long-term allocation with phased entry, using AI-themed ETFs for diversification to effectively reduce risks from individual stock fluctuations. Avoid chasing high prices in the short term, and let the power of compound interest gradually manifest over time.