Top Taiwan Tech Stocks to Watch, According to Macquarie

Macquarie highlighted four Taiwan tech names positioned to benefit from AI and high-performance computing demand, with TSMC remaining the top pick as HPC accounted for over 60% of revenue in Q1 2026. MediaTek’s AI ASIC business is projected to reach about $12 billion and 40% of total revenue by 2027, while eMemory and Accton were identified as beneficiaries of security and next-generation server networking demand. The piece is broadly constructive for the AI hardware supply chain but is mainly analyst commentary rather than a new company-specific catalyst.

Analysis

The key takeaway is not simply “AI is good for Taiwan semis,” but that the market is increasingly rewarding control points in the stack that reduce integration risk. TSM sits at the center of that trade because advanced packaging is becoming as strategically important as leading-edge wafers; that should sustain pricing power even if pure-wafer ASPs normalize. The more interesting second-order effect is margin capture shifting away from chip designers toward vendors that own the bottleneck interfaces: packaging, network scaling, and trust/security layers.

MediaTek’s AI ASIC push is the clearest idiosyncratic upside, but it also introduces execution risk that the market may still underappreciate. If its ASIC revenue inflects as projected, the stock should rerate from handset multiple to semi-growth multiple, but the transition likely comes with lumpier gross margins and customer concentration risk before scale benefits show up. That makes the next 2-4 quarters a catalyst window, not a straight-line story.

The under-discussed winners are the infrastructure enablers: Accton benefits if scale-up networking architectures become the default for next-gen AI servers, and eMemory benefits if hardware security becomes a procurement requirement rather than a feature. Both names are more levered to design-standard adoption than to headline AI capex, which can make them less crowded. The contrarian risk is that the market is already front-running “AI supply chain” beneficiaries, so upside may depend on whether orders convert into visible backlog and not just narrative validation.

Catalyst-wise, watch for customer concentration, export-control changes, and any shift from custom ASIC demand back toward merchant GPUs if AI training spend re-accelerates. In that scenario, TSM remains resilient because it is the plumbing, but MediaTek and Accton are more exposed to architecture mix. A reversal would likely show up first in order cadence over the next 1-2 quarters, long before consensus earnings models catch up.

Key Decisions for Investors

• Long TSM on dips over the next 1-3 months; best risk/reward remains the highest-quality AI infrastructure toll collector, with downside cushioned by non-AI advanced node exposure and upside from packaging scarcity.
• Initiate a 6-12 month long MediaTek / short handset-semiconductor basket pair if available; the thesis is multiple expansion from ASIC mix shift, but hedge with names still tied primarily to mature-cycle mobile demand.
• Buy Accton on a breakout above recent highs, targeting a 3-6 month horizon; use tight risk controls because the stock is most sensitive to whether scale-up networking adoption actually broadens beyond a few hyperscaler designs.
• Add eMemory as a smaller satellite long over 6-9 months; this is a second-order beneficiary with less consensus ownership, but size modestly because the catalyst depends on security becoming embedded in silicon procurement standards.