Taiwan's cybersecurity and cloud software stocks jumped sharply, a win for investors in that niche even as the broader Taiwan market fell hard.

• Several security names hit their daily trading limit, with cloud service firms up more than 8%, while the overall index dropped and briefly fell below 46,000.
• The trigger was Nvidia chief Jensen Huang saying cybersecurity is likely AI's next major application area.
• His reasoning: AI now writes much of the code, which creates more software holes, and both attacks and fixes are getting automated, so companies need far more security tools.
• Nvidia is already moving in — it teamed with CrowdStrike on an AI security model built on Nvidia's open Nemotron models.
• Analysts warn the run-up is stretched and chasing these stocks now is risky; better to wait for a pullback and stick to firms with long-term service contracts.

Outlook: The theme has legs, but a busy central bank week — with a Fed hike widely expected after hot US inflation — plus futures settlement should keep Taiwan stocks choppy near term.