tsmc's taipei stock dips despite nvidia boost: should investors worry?

2025-02-27 tsmc

Taipei, Thursday, 27 February 2025.
despite nvidia’s strong financial results fueling a tsmc adr rebound, tsmc’s stock in taipei faced a downturn, dropping as low as 1045 ntd. this divergence has sparked concern among investors, with some fearing a potential decline below the 1000 ntd mark. however, analysts are urging calm, attributing the fluctuation to temporary market factors and advising investors to maintain their positions. trump’s tariff threats add another layer of complexity.

adr rebound and taipei stock reaction

nvidia’s latest earnings report exceeded expectations, triggering a rebound in tsmc’s american depositary receipts (adr), effectively reversing a six-day losing streak [1][3]. however, tsmc’s shares in taipei did not follow suit, opening higher but then declining, reaching a low of 1045 ntd, a decrease of 15 ntd [1]. this discrepancy stirred anxieties among investors, with discussions emerging on online platforms about the stock potentially breaching the critical 1050 ntd support level and facing a ‘1000 ntd defense’ scenario [1].

analyst perspective on market fluctuations

veteran taiwan stock analyst lee yung-nien addressed the situation, pointing to donald trump’s recent statements regarding a potential new round of tariffs, specifically a 25% levy on chips, with a decision possibly as early as april 2, as a contributing factor [1]. furthermore, concerns about potential technology transfer due to pressure for tsmc to establish more us-based facilities are weighing on the stock [1]. lee yung-nien believes the market is overreacting, stating that tsmc is unlikely to relinquish core technologies [1].

tsmc’s adr performance

on february 26, 2025, tsmc’s adr closed at $194.62, marking a 2.77% increase and ending a six-day downward trend [3][6]. this surge widened the premium compared to the taipei-listed shares to 20.5% [6]. the adr’s performance reflects investor confidence outside of taiwan, influenced by factors such as nvidia’s positive outlook and overall semiconductor sector strength [1][6]. tsmc’s adr traded between a high of $196.07 and a low of $191.56 on the same day [3].

the broader market context reveals that the taiwan weighted stock index increased by 116.83 points, closing at 23,402.55 [6]. tsmc itself saw a 0.5% increase, closing at 1,060.00 ntd in taipei trading [6]. other related companies also experienced fluctuations; for instance, united microelectronics corporation (umc) was trading at 6.60 [3]. hon hai precision industry co., ltd. was at 10.90 [3]. these figures provide a glimpse into the interconnectedness of the semiconductor industry and the broader market’s response to global economic cues [3][6].

partner performance and industry trends

tsmc’s partners are also demonstrating strong performance, with globalwafers reaching a new historical high in stock price [7]. globalwafers reported a month-on-month revenue increase of 1.85% and a year-on-year increase of 46.4% [7]. their net profit for january was 74 million ntd, a year-on-year increase of 124% [7]. this reflects the broader positive sentiment surrounding the semiconductor industry and the anticipated increase in demand for semiconductor materials due to tsmc’s capacity expansion [7].

Bronnen

stock volatility adr rebound