Taiwan's stock market just had its worst crash in history, and it's bad news for investors but possibly a buying opportunity for the patient.

• Taiwan's main index crashed as much as 3,737 points in a single session, the biggest intraday drop ever, before closing down about 1,884 points, down over 4.5%. In just one month the index has fallen more than 24% from its October high.
• The trigger came from the US: big AI chip and tech companies are spending heavily on AI infrastructure, and investors are getting nervous about whether that spending will ever pay off, sparking a sharp selloff in US tech and chip stocks that spread to Taiwan.
• US midterm elections added to the worry — Democrats took control of Congress and several governorships, and markets fear new rules could make it harder to build big AI data centers.
• Foreign investors have been dumping Taiwanese stocks hard, pulling out tens of billions of dollars this year alone, while local Taiwanese fund managers and everyday investors have been buying heavily into index funds to cushion the fall.
• Analysts argue the panic looks overdone: company profits haven't actually been cut, AI infrastructure orders already stretch out to 2027-2028, and both US political parties want America to stay ahead of China in AI, so a full stop to data center building is unlikely even if it slows down.

Outlook: Expect a short-term bounce attempt after such a steep drop, with analysts suggesting investors wait for stabilization before buying back in gradually, though AI-bubble worries and foreign selling could keep pressure on the market for now.