tsmc surges to three-month peak, market cap soars

2025-06-09 tsmc

Taipei, Monday, 9 June 2025.
Taiwan Semiconductor Manufacturing (tsmc) saw its stock jump to NT$1010, a three-month high. The company’s market capitalization now exceeds NT$26 trillion. This rise happens before tsmc distributes its Q4 2024 dividend of NT$4.5 on June 12. Investors are watching closely to see if the dividend will be quickly reinvested, repeating a past trend. The stock’s performance highlights strong investor confidence in tsmc’s solid market presence and potential for growth.

market overview

On Monday, tsmc’s stock price reached NT$1010, marking a 1.51% increase and a three-month high since March [1]. This surge boosted tsmc’s market capitalization above NT$26 trillion [1]. The broader Taiwan stock market also benefited, with the overall market value climbing from NT$69.71 trillion to NT$70.76 trillion [1]. The stock opened at NT$1005, surpassing its previous close of NT$995 [1]. The Taiwan Stock Exchange Weighted Index increased by 140.79 points to reach 21801.45 [7].

expert analysis and market sentiment

Cathay Securities Consultant Cai Minghan noted that while U.S. stocks and tech stocks have recently hit new highs, tsmc’s stock performance has been relatively conservative [1]. According to Cai, tsmc’s American depositary receipts (ADR) currently have a premium of about 20%, suggesting the stock is undervalued and poised for a short-term rise [1]. Cai Minghan anticipates that tsmc’s stock will continue to see a gradual increase [1]. He also noted that external factors, primarily potential U.S. tariffs on chips, have been a concern [1].

tariff impact and long-term growth

Despite market anxieties about potential tariffs, Cai Minghan believes the actual impact on tsmc will be limited [1]. He stated that less than 1% of Taiwan’s chip exports go to the U.S., minimizing the operational impact of tariffs on tsmc [1]. He also reaffirmed tsmc’s strong fundamentals and expects long-term growth driven by AI and high-performance computing (HPC) demands [1]. tsmc’s Chairman Wei Zhejia expressed confidence in the company’s future, stating AI demand is strong and the company will increase capacity to meet customer needs [6].

dividend distribution and investor behavior

tsmc is scheduled to distribute its Q4 2024 earnings with a NT$4.5 dividend on June 12 [2]. The company has a history of quickly filling the gap after dividend payouts, and the market anticipates this trend to continue if the U.S. stock market remains stable [1][2]. However, ahead of the dividend distribution, there has been a decrease of over 12,000 in tsmc’s shareholder count, with a notable reduction in retail investors holding smaller quantities of shares [4]. This suggests some small shareholders are securing profits before the dividend distribution [4].

future outlook and market dominance

Analysts at the Motley Fool project tsmc’s market capitalization could reach $3 trillion within five years, driven by AI applications and its leading position in the foundry market [5]. tsmc currently holds 67% of the global third-party foundry market, significantly ahead of Samsung’s 11% [5]. The company’s revenue is expected to grow substantially, with AI chip market growth estimated at an annualized rate of 35% through 2033 [5]. tsmc’s advanced manufacturing processes are used by major companies like Nvidia, AMD, and Apple for AI chip production [5].

night market performance and investment strategies

tsmc’s performance in the Taiwan stock market’s night trading sessions has been robust, reflecting its long-term investment value [8]. Its night trading is characterized by high liquidity, especially following financial reports or significant industry news [8]. The stock’s movement in night trading is closely linked to U.S. stock market trends [8]. Investors are advised to adopt flexible trading strategies, increasing trading activity during company announcements, and combining technical and fundamental analysis to manage risks and secure profits [8].

Bronnen

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