Taipei, July 2 (CNA) The Taiwan stock market surged by 17162 points in the first half of the year, setting a new historical record. Entering the second half, Fubon Securities Investment Trust (Fubon SITC) is optimistic about the market, citing the traditional peak season, new AI product launches, and election rallies as tailwinds. They forecast that the Taiwan stock index could challenge 54500 points by the end of the year. However, they also caution that high leverage in the market has become the biggest risk. Fubon Financial Holdings held its mid-year 2026 Fubon Financial Trends Forum today. Fubon SITC Chairman Chen Yi-kuang described the first half's stock market performance as "a bull meeting a gray rhino." Despite negative interferences in the first half of the year, such as the US-Iran conflict, major central banks leaning towards interest rate hikes, and market liquidity, the Taiwan stock market's gains have led the world, driven by the unstoppable trend of the AI industry. Statistics show that as of this year, 168 listed and OTC companies in Taiwan have seen their stock prices more than double, with many reaching the "thousand-dollar stock" status. Looking ahead at the Taiwan stock market's trend, Chen Yi-kuang analyzed that improved corporate profits will provide a solid foundation for the market. In 2026, driven by strong AI demand and price increases across various component suppliers, Fubon estimates that the total profit for Taiwan's listed and OTC companies will reach NT$6.83 trillion, a significant increase of 51.1% from NT$4.52 trillion in 2025. According to Fubon's statistics, the PER (price-to-earnings ratio) for Taiwan stocks between 2010 and 2025 has generally ranged between 10x and 24x. Chen Yi-kuang extrapolates from this, and with upward revisions to Taiwan's corporate earnings and considering a PER of 24x for the next year, he optimistically forecasts that the Taiwan stock index could challenge 54500 points by the end of the year. However, Ch