Tech Stocks Rally: AI-Driven Surge Brings Taiwan and Korea Closer to India's Market Capitalization

Asia's Equity Markets Close In on India's Total Market Capitalisation

The global equity market rankings are undergoing a significant shift, with Taiwan and South Korea rapidly closing in on India's total market capitalisation. This trend, driven by strong gains in semiconductor and AI-linked stocks, has the potential to propel India out of the world's fifth-largest equity market position.

Taiwan's total market capitalisation has reached approximately $4.6 trillion, just 6 percent below India's $4.9 trillion. South Korea is also narrowing the gap, with its market cap at around $4.2 trillion, about 12 percent away from India's level.

Taiwan's market capitalisation has seen a significant surge in 2026, with a nearly 40 percent increase in the first four months of the year, adding over $1 trillion in value. Over the past 12 months, Taiwan's market cap has risen by around $2.7 trillion, marking a sharp 150 percent increase. This has positioned Taiwan as a strong contender to overtake India as the world's fifth-largest equity market.

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The rally in Taiwan has been largely driven by semiconductor and AI-linked stocks. Taiwan Semiconductor Manufacturing Company (TSMC) has led the charge, benefiting from strong global demand for artificial intelligence hardware, and alone accounts for more than 40 percent of the benchmark index's total market value.

However, the rally has broadened beyond TSMC, with significant gains also seen in chip designer MediaTek, iPhone assembler and AI server maker Hon Hai Precision Industry, chip packaging firm ASE Technology Holding, power management supplier Delta Electronics, and AI server maker Quanta Computer. These companies are all beneficiaries of the global AI supply chain buildout. Taiwan has become central to the global semiconductor ecosystem, supplying advanced chips to companies including Nvidia.

South Korea's market has followed a similar trajectory, with total market capitalisation reaching about $4.1 trillion. The Kospi index has rallied sharply, supported by gains across the technology sector. While memory chip giants Samsung Electronics and SK Hynix have been the dominant drivers, accounting for more than 40 percent of the Kospi's total market cap, the rally has also lifted a broader set of AI-linked stocks across the index.

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Collectively, Taiwan and South Korea have added around $4.6 trillion in market value over the past year, underscoring the scale of the AI-driven transformation underway in Asia.

In contrast, Indian markets have seen heightened volatility since September 2024. The total market capitalisation of listed firms in India rose just 2 percent in 2025 and has declined about 7 percent so far in 2026, weighed down by stretched valuations, subdued earnings growth, continuous outflows from foreign investors, and no exposure to AI-driven sectors. Geopolitical tensions, including trade-related uncertainties and the conflict involving the US, Iran, and Israel, have also pushed crude oil prices higher, raising concerns around inflation and fiscal pressures.