Taiwan's market bounced back hard after a sharp drop, and analysts are pointing money toward AI-linked electronics names — good for investors riding the AI boom, but the Fed is now the big wildcard.

• A new brokerage report names five buy-rated electronics stocks — Asmedia, Nan Ya PCB, Chenming, Winbond and Kinik — with Asmedia and Nan Ya PCB seen having the strongest profit growth over the next two years.
• The rally is driven by AI servers, advanced chip packaging and cutting-edge manufacturing, with money rotating fast between groups like optical parts, memory, cooling and AI chips.
• Taiwan's index jumped nearly 700 points to reclaim 46,551 after US stocks rallied, led by TSMC and MediaTek, though selling pressure in electronics has not fully cleared.
• US August jobs came in far above expectations at 162,000 with earlier months revised up, pushing US stocks lower and gold down, and reviving talk of a Fed rate move.
• Traditional industry and financial stocks are being pitched as the safer side of the trade, offering downside protection and high dividends.

Outlook: Taiwan's index may open higher and test 48,000 next week, but next week's US inflation reading will decide how far the rally runs.