India Risks Losing Its Spot As World’s 5th-Largest Stock Market As AI Boom Powers Taiwan, South Korea

India’s position as the world’s fifth-largest stock market is starting to look less secure. For the last two years, India stayed comfortably ahead, supported by strong economic growth and rising investor participation. But now, Taiwan and South Korea are quickly catching up.

Taiwan’s stock market value has climbed to nearly $4.60 trillion, while South Korea’s market cap has crossed $4.10 trillion. India is still ahead at around $4.90 trillion, but the gap has become much smaller.

The main reason behind this shift is the global boom in artificial intelligence (AI), which has boosted chip-making companies in Taiwan and South Korea.

TSMC And Chip Stocks Fuel Taiwan’s Rise

Taiwan’s stock market has seen a massive rally in 2026, emerging as one of the biggest winners of the global AI boom. In just the first four months of the year, the country added more than $1 trillion in market value, pushing its total market capitalisation up by nearly 40 per cent.

The momentum has been even stronger on a yearly basis. Over the last 12 months, Taiwan’s equity market has expanded by roughly $2.7 trillion, a jump of around 150 per cent.

TSMC, the world’s largest chipmaker, has led the surge as global demand for AI hardware continues to rise. The company alone makes up more than 40 per cent of Taiwan’s benchmark index.

The gains are not limited to TSMC. Companies such as MediaTek, Hon Hai Precision Industry, ASE Technology, Delta Electronics, and Quanta Computer have also rallied strongly as demand for AI servers, advanced chips, and semiconductor equipment increases globally.

Taiwan has now become one of the most important hubs in the global AI supply chain, supplying critical chips and components to companies including Nvidia.

This is a developing story...