KGI Asia pointed out that although the short-term profit-taking pressure exists in the Taiwan stock market, supported by the three major positive factors of interest rate cuts, the AI wave, and foreign capital inflows, the Taiwan stock market is expected to continue to fluctuate upwards in the first quarter of this year. The bank stated that although the timing of the Fed's official interest rate cut this year is likely to be influenced by inflation, KGI estimates that the Fed will conduct its first rate cut before June, which will weaken the US dollar and strengthen the willingness of foreign capital to replenish Taiwan stocks. In addition, Nvidia's stock price has soared significantly since it announced better-than-expected financial forecasts in May of last year, but its forecasted P/E ratio is getting lower, indicating a surge in demand for generative AI driving the profits of the global tech giants. As Nvidia leads the AI-related hardware supply chain, they are currently in a phase of profit explosion. KGI stated that Taiwan holds a global monopoly position in advanced AI chips and enjoys a market share of over 90% in AI servers. As long as Nvidia and other leading global AI stocks continue to rise, Taiwan's related supply chain will benefit. In the near term, stock selection can focus on two indicators: AI stocks with low valuations and fundamentals that have hit bottom and are valued below the average level of the past 5 years.