Taiwan chip designer Sinbon-KY (世芯-KY) surged to its daily trading limit, a bullish sign for the stock as investors bet on explosive earnings growth.

• Shares hit the maximum daily gain within half an hour of opening, with heavy buying demand still lined up.
• Analysts expect profit per share to jump from about NT$122 this year to over NT$200 next year, as revenue is projected to roughly double on strong demand for AWS cloud chips.
• Despite the bullish earnings outlook, the brokerage cut its price target, citing a broader market reset in how richly tech stocks are being valued.
• The rally came alongside a broad Taiwan stock market surge of over 2.8%, driven by a rally in U.S. tech stocks, lifting chip giants TSMC, MediaTek, and Foxconn.
• Separately, Nvidia CEO Jensen Huang's admission of an extramarital affair triggered an independent board investigation, rattling Nvidia-linked futures and pressuring Taiwan supply-chain stocks tied to Nvidia.

Outlook: Sinbon-KY's growth story remains strong on AI chip demand, but the stock could stay volatile as investors digest both the market-wide valuation reset and fallout from the Nvidia leadership controversy.