Taiwanese Investors Pile Into Stocks Amid AI Boom, Fueling Debt-Fueled Rally

Taiwan's stock market is experiencing a frenzied rally, with the Taiwan Stock Exchange surging over 100% in the past year, largely driven by global demand for AI technology and the island's dominant role in chip production. This surge has led to a significant increase in retail investor participation, with many, like 26-year-old Andy Cheng, taking on debt to invest in stocks. The market's rapid growth has propelled its capitalization to become the world's fifth-largest, surpassing countries like the UK. The intense activity has caused trading volumes to spike, leading to website crashes for some brokerage firms, and has attracted the attention of analysts discussing its economic implications.