Taiwan Index Hits Record High: Taiwan Surpasses India as World's 4th Largest Stock Market

The taiwan index (TAIEX) has reached a historic milestone, sparking significant interest among investors in India. As of September 23, 2026, Taiwan officially displaced India to become the fourth-largest stock market in the world by market capitalization, driven by an unprecedented surge in the artificial intelligence (AI) sector.

The Global Shift: Taiwan vs. India

On September 23, 2026, the TAIEX rose by 357.12 points (0.75%) to hit a record high of 48,157.29. This climb pushed the total market capitalization of the Taiwan Stock Exchange to US$5.3 trillion, effectively overtaking India, whose market value stood at US$4.94 trillion at the time.

While Indian investors often track the sensex today to gauge domestic health, this global shift highlights how concentrated AI hardware growth can rapidly alter international market rankings. Taiwan now sits behind only the United States, China, and Japan in terms of total market value.

Global Market Capitalization Rankings (as of Sept 23, 2026)

Rank	Country	Market Capitalization
1	United States	US$82.7 trillion
2	China	US$21.22 trillion
3	Japan	US$8.59 trillion
4	Taiwan	US$5.3 trillion
5	India	US$4.94 trillion

What is Driving the TAIEX Surge?

The explosive growth of the taiwan index is not a sudden spike but the result of a sustained "AI wave." The market has seen massive gains over the last two years, jumping 275.73% in 2025 and further increasing by 66.27% so far in 2026.

According to market reports, this growth is primarily fueled by:

• AI Hardware Demand: Strong performance in semiconductor and memory stocks as the world builds out AI infrastructure.
• Consumer AI Adoption: High demand for AI agents, such as Meta’s Muse agent, which recently topped US app download charts, buoying the data hardware sector.
• Tech Leadership: Memory stocks have recently taken the lead, supported by a consistent winning streak for semiconductor firms.

Context for Indian Investors

For those monitoring the taiwan index from India, the trend underscores the critical role of hardware in the AI economy. While India remains a powerhouse in services and software, Taiwan's dominance in chip manufacturing has allowed its market cap to leapfrog other major economies, including the UK (6th at US$4.86 trillion) and South Korea (US$4.5 trillion).