nvidia surges, tsmc lags: a cause for concern?

2025-02-28 tsmc

Taipei, Friday, 28 February 2025.
despite nvidia’s blockbuster financial report triggering a rebound in its adr, tsmc’s taipei-listed stock failed to follow suit. this divergence raises questions about tsmc’s ability to maintain its market value amidst ongoing market volatility. analysts are closely monitoring the situation, given tsmc’s critical role as a major chip supplier for nvidia and other tech giants. the tepid response from tsmc’s stock suggests investors may be wary of broader market factors impacting the semiconductor giant.

nvidia’s financial triumph

nvidia’s latest financial report showcased better-than-expected revenue, profits, and future projections, leading to a rebound in its adr [5]. Specifically, nvidia’s adjusted fourth-quarter earnings per share (eps) for fiscal year 2025 reached $0.89, surpassing the anticipated $0.84 [5]. The company’s revenue hit $39.3 billion, exceeding expectations with a 10.393 10.39% growth rate [5]. Furthermore, nvidia’s fiscal year 2025 revenue soared by 1044.737 1046.49%, reaching $130.5 billion, with data center revenue contributing $35.6 billion, marking a 93% year-over-year increase [5].

tsmc’s stock reaction

despite nvidia’s strong performance, tsmc’s (2330) shares in taipei did not reflect the same upward momentum [1]. this tepid response is particularly noteworthy given tsmc’s role as a key chip supplier to nvidia [1][7]. while nvidia’s pre-market activity on february 27 showed a rebound of over 2%, tsmc’s adr experienced only a slight increase [3]. this divergence suggests that factors beyond nvidia’s success are influencing tsmc’s stock performance [1].

broader market influences

the differing reactions between nvidia and tsmc’s stocks may stem from concerns about broader market conditions and geopolitical risks [1][7]. the nikkei 225 index, for instance, closed up by 0.30% but faced headwinds from declining shares of advantest, a chip equipment supplier, even after nvidia’s positive report [2]. additionally, domestic issues within taiwan, such as the ‘fourth receiving point’ (四接) environmental assessment controversy involving taipower, add complexity [1]. these factors can impact investor sentiment towards tsmc, overshadowing the direct benefits from nvidia’s success [1].

expert perspectives and analysis

analysts are closely watching tsmc’s stock valuation in relation to nvidia’s performance [7]. the market is keenly aware of tsmc’s significance in the semiconductor industry and its close ties with nvidia [1][7]. however, tsmc’s stock faces pressures beyond its technological prowess [1]. for example, concerns over energy supply and environmental regulations, as highlighted by the ‘fourth receiving point’ dispute, can affect tsmc’s operational outlook and, consequently, its stock [1]. the situation warrants careful observation to determine whether tsmc can overcome these challenges and align its stock performance with its strategic importance [7].

Bronnen

Stock Rebound Financial Report