Central News Agency (CNA, Taipei, July 2nd) Taiwan stocks surged 17162 points in the first half of the year, setting a new historical record. Entering the second half, Fubon Securities expects the Taiwan stock index to challenge 54500 points by year-end, driven by traditional peak seasons, new AI product launches, and election rallies. However, it also warns that high leverage in the market has become the biggest risk for Taiwan stocks. Fubon Financial Holdings held its mid-year 2026 Fubon Financial Trends Forum today. Fubon Securities Chairman Chen Yi-kuang described the first half performance of Taiwan stocks as "a bull meeting a gray rhino." Despite negative interferences in the first half of the year, such as the US-Iran war and major central banks leaning towards interest rate hikes, and market liquidity, Taiwan stocks' gains have led the world, driven by the unstoppable trend of the AI industry. Statistics show that as of this year, as many as 168 listed and OTC companies in Taiwan have seen their stock prices more than double, with 'thousand-dollar stocks' blooming everywhere. Looking ahead at the trend of Taiwan stocks, Chen Yi-kuang analyzed that the improvement in corporate profits will provide a solid foundation for Taiwan stocks. In 2026, driven by strong AI demand and price increases for various components, Fubon estimates that the total profit of listed and OTC companies in Taiwan will reach NT$6.83 trillion, a significant increase of 51.1% compared to NT$4.52 trillion in 2025. According to Fubon's statistics, the PER (price-to-earnings ratio) of Taiwan stocks from 2010 to 2025 has been in the range of approximately 10 to 24 times. Chen Yi-kuang extrapolated from this that with the upward revision of Taiwan stock corporate profits, and measured by a PER of 24 times for the next year, the Taiwan stock index is optimistically expected to challenge 54500 points by year-end. However, Chen Yi-kuang also warned that high leverage has become the biggest risk