Taiwan's passive component makers are bouncing back hard, a good sign for investors betting the long inventory glut is finally over.

• Holy Stone hit its daily price limit, Walsin Technology rose over 8%, and Yageo gained 6% — 32 of 33 stocks in the group closed higher.
• The rally is driven by hope that the worst is past: customers are placing rush orders again and long-term demand is picking up.
• Distributor stocks of MLCC capacitors fell 8% in a month, and Samsung Electro-Mechanics is raising MLCC prices, tightening supply further.
• AI demand is the engine underneath it all — foreign brokers still like Yageo and see much more upside.
• The broader Taiwan market is choppy, with the index swinging hundreds of points day to day and money rotating between chips, memory, banks, and now passives.

Outlook: The rally has room to run while money keeps flowing in, but stocks that jumped this fast are prone to sharp pullbacks.