Taiwan's stock market plunged 755 points and lost the 47,000 level, with TSMC falling along with it. In the short term this is bad news for those holding shares, but for long-term buyers looking to build positions in stages, it is an opportunity.

• The Taiwan market was at one point down nearly 1,000 points, with foreign investors pulling out close to NT$90 billion in a single day. The selling pressure stemmed from surging international oil prices and rising expectations of US interest rate hikes.
• TSMC's August revenue topped NT$500 billion for the first time, a record monthly high, driven mainly by iPhone peak-season shipments combined with a surge in demand for AI servers.
• After talks with TSMC executives, Goldman Sachs concluded that the long-term gross margin target of 56% or higher is secure, and maintained its fair value estimate of NT$3,100.
• Chen Chung-ming believes the broader market is still consolidating at elevated levels and that the conflict in the Middle East could affect Federal Reserve decisions; in terms of strategy, investors should "buy on dips and not chase highs."
• The real pressure comes from rising long-dated government bond yields, as institutional investors rebalance their asset allocations and equity valuations adjust accordingly — not from any bearish view on AI.

Outlook: If yields continue to climb, Taiwan stocks will face further short-term pressure, but earnings at listed companies are expected to reach a record NT$7 trillion this year, making the pullback an opportunity to look for entry points.