Taiwan's memory chip stocks surged and TSMC's price target got a bump, pointing to a strong near-term outlook for the sector despite broader market jitters.

• Memory chipmakers Nanya Technology, Powerchip, and Macronix all jumped sharply as investors bet that the industry's inventory glut is finally clearing and prices are stabilizing.
• Analysts are bullish on Powerchip and Nanya's upcoming earnings, pointing to rising prices and factory utilization, and are forecasting continued strong growth into next year thanks to AI server demand.
• TSMC shares also got a boost after analysts said the stock is undervalued, citing strong AI chip demand and expected price hikes in 2027 plus new capacity coming online in 2028; the 12-month target was raised sharply.
• Taiwan's stock market opened higher after a holiday break, recovering some of last week's steep losses, as traders weighed a recent tech-stock wobble in the US against signs of support in global markets.
• Anthropic's new IPO filing flagged Taiwan's geopolitical risk as a major threat to the global chip supply chain, warning that a conflict or blockade around Taiwan could disrupt advanced chip production for years.

Outlook: If memory prices keep recovering and AI chip demand stays strong, Taiwan's chip stocks and TSMC are likely to keep climbing, though traders are watching this week's Fed meeting and several earnings calls for signs of a pullback.