chip giant tsmc now worth more than tesla as ev stock slides
Taipei, Thursday, 27 February 2025.
the tides are shifting in the tech world. tsmc’s market capitalization reached $982.17 billion, surpassing tesla’s $973.96 billion. the news comes as tesla faces a significant stock slump. the electric vehicle maker’s european sales numbers have plummeted by 45% year over year. meanwhile, the semiconductor manufacturer tsmc stands strong. this change reflects shifting investor confidence and evolving market dynamics.
tesla’s stock decline
Tesla’s stock (TSLA) has faced significant headwinds, with its price plummeting. On Tuesday, the stock experienced an intraday drop of 10.1% before closing down 8.39% at $302.80 [1][6]. This decline caused Tesla’s market capitalization to fall below $1 trillion, wiping out $89.2 billion in value overnight [1]. The stock’s poor performance reflects investor concerns about the company’s future prospects, especially with the rise of chinese ev manufacturers such as byd [2].
european sales slump
Adding to Tesla’s woes, its european sales have suffered a sharp decline [2][6]. January sales figures revealed a 45% decrease compared to the same period last year, with sales totaling only 9,945 vehicles [2]. Tesla’s market share in europe also decreased from 1.8% to 1% [2]. This sales slump cannot be attributed to a general downturn in the european ev market, as overall electric vehicle sales in europe actually grew by 37.3% during the same period [2].
tsmc’s market leadership
While tesla struggles, tsmc (tsm) is solidifying its position as a leader in the semiconductor industry [1]. Tsmc’s market capitalization has surpassed tesla’s, reaching $982.17 billion [1]. This shift underscores the importance of semiconductors in today’s technology-driven world [GPT]. Tsmc’s dominance is further reinforced by the fact that its technology contributes significantly to the performance of market-leading etfs [4]. The company’s stock performance in taiwan has recently rebounded, reflecting investor confidence [3].
factors influencing tsmc’s stock
Several factors influence tsmc’s stock performance. The company’s stock is closely tied to the taiwan stock market [4]. Market-cap weighted etfs that contain tsmc have outperformed high-dividend etfs [4]. Tsmc’s stock performance is also affected by geopolitical considerations, particularly us efforts to bring chip manufacturing back to america [3]. These efforts have led tsmc to make significant investments in the us, including plans to build a third fab in arizona [3].
asml’s role and outlook
Asml, a crucial supplier to tsmc, anticipates a subdued sales performance in 2025 [1]. This is due to the gradual end of shipments of 7nm ai chips to north american clients and weak demand for 5nm ai chips from idm customers [1]. Asml projects a 10-20% decrease in annual revenue [1]. However, asml plans to initiate multiple 2nm projects in 2025 and expects strong growth in demand for ai and network-related projects [1]. Asml reported net sales of $17.7 billion and a net income of $4.2 billion for 2024 [1].