Foreign investors have parked record amounts of cash in Taiwan this year, a strong sign they still believe in the market and good news for Taiwanese stocks.

• Foreign funds moved a record amount of money into Taiwan in the first eight months of the year, the most ever for that period.
• Those same investors have been net sellers of Taiwanese shares, the heaviest selling since 2022 — but they are leaving the profits in Taiwan instead of taking the money home.
• August flipped the other way, with foreign investors buying heavily and offsetting much of the earlier selling.
• The pull is Taiwan's chip industry: the AI spending boom has made contract chipmakers the anchor of the market.
• Taiwanese stocks have risen more than 25% each year since 2023 and are up sharply again this year, one of the best runs in the world.

Outlook: Some foreign brokers see the index climbing much higher over the next year, though others think the market has run too far too fast and needs a pause.