Taiwan's stock market gave up early gains and fell more than 200 points, a bad sign for investors hoping the AI-driven rally would keep going.

• The market opened higher on strength in TSMC and other chip-related shares.
• Gains faded once UMC, Foxconn and other AI and optical-electronics stocks turned lower.
• Banks and traditional industrial stocks also weakened, pulling the index into the red.
• The drop follows a strong Monday, when the index jumped over 700 points and closed above 47,000.

Outlook: The rally looks shaky, and the market's direction now hinges on whether chip stocks can hold up as the rest of the market slips.