Taipei: Shares in Taiwan closed higher Tuesday led by the electronics sector, after Nvidia Corp. CEO Jensen Huang's upbeat AI remarks overnight sparked buying that helped the local index bounce back from a slump in recent sessions, dealers said.According to Focus Taiwan, the Taiex, the Taiwan Stock Exchange's benchmark index, ended up 494.06 points, or 1.48 percent, at 33,836.57 after moving between 33,380.84 and 34,008.70. Turnover totaled NT$818.89 billion (US$25.65 billion). The gains on Tuesday recouped more than half of the losses over the previous three sessions, when the index dropped 771.68 points due to a spike in international crude oil prices amid Middle East tensions.Investor sentiment toward AI remained positive, with Concord Securities analyst Kerry Huang noting that Jensen Huang's comments led to increased buying. The Nvidia CEO expressed expectations for AI demand to top US$1 trillion by 2027 at the GTC 2026. Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which produces chips for Nvidia, saw a boost in buying interest after its American depositary receipts rose 0.57 percent and Nvidia shares gained 1.65 percent overnight, according to Kerry Huang.TSMC, which accounts for over 40 percent of total market value, closed up 1.63 percent at NT$1,870.00. The stock contributed about 240 points to the Taiex's rise and drove the electronics index 1.75 percent higher. Interest in memory chip suppliers remained strong amid a continued supply shortage, with shares in Macronix International Co. soaring 10 percent to end at NT$130.50 and Winbond Electronics Corp. rising 5.56 percent to close at NT$123.50, Huang added.Powerchip Semiconductor Manufacturing Corp. surged 10 percent to close at NT$71.70 following its technology cooperation with American memory chip provider Micron Technologies Inc. Additionally, Yageo Corp., the world's third-largest multi-layer ceramic capacitor (MLCC) maker, also jumped 10 percent to end at NT$286.00.While the electronics sector dominated the main board , non-tech stocks showed mixed results. Formosa Plastics Corp. lost 0.85 percent to close at NT$45.45, and Nan Ya Plastics Corp. shed 4.15 percent to end at NT$85.50. Conversely, Shihlin Electric and Engineering Corp. rose 2.50 percent to close at NT$205.00, and Fortune Electric Co. ended up 1.32 percent at NT$921.00.The financial sector lagged behind the Taiex, rising just 0.84 percent, with Fubon Financial Holding Co. up 1.13 percent to close at NT$89.80 and Cathay Financial Holding Co. ending up 1.10 percent at NT$73.20. "Today's gains also reflected the pullback of crude oil prices but with no immediate sign of an end to the war in the Middle East, crude oil price fluctuations remain a factor to the market," Huang commented. "Stay cautious despite the index rebound."According to the Taiwan Stock Exchange, foreign institutional investors bought NT$457 million in shares on the main board Tuesday.