Taiwan's stock market is bouncing back after a brutal crash, though analysts say it's too early to celebrate — good news for investors hoping for stability, but the recovery is fragile.

• Taiwan stocks lost over 5,500 points (12%) in a week, falling below the 40,000 mark after peaking near 50,000 just a month earlier.
• A rebound in US tech stocks and a government stabilization fund stepping in helped lift sentiment, with chip giant TSMC's US shares jumping over 6%.
• Analysts warn this drop is different from past dips — it's tied to worries that US politicians may restrict power and data-center buildouts needed for AI growth, so they're telling investors not to chase a quick rebound.
• Separately, about 600,000 Nvidia AI chips are stuck in Hong Kong because Beijing hasn't approved their import into mainland China, as it weighs short-term computing needs against long-term tech independence.

Outlook: Markets may open higher short-term on the rebound in US tech and TSMC, but analysts say a real recovery depends on global markets stabilizing and clarity on US AI policy.