tsmc's nt$1100 hurdle: is currency appreciation to blame?

2025-07-07 tsmc

taipei, Monday, 7 July 2025.
tsmc’s taiwan stock is struggling to stay above nt$1100, despite its adr hitting new highs in the us market. a strong new taiwan dollar makes direct adr purchases more appealing to foreign investors, bypassing local share conversions. an analyst suggests this discrepancy is temporary. The adr surge signals underlying strength, hinting that local shares will eventually align with fundamental value. Broader market trends, including nvidia’s performance, support a positive outlook for tsmc’s stock.

current stock performance

As of today, tsmc’s stock is trading at nt$1075, a -0.92 % decrease [2]. The stock opened at nt$1080, reached a high of nt$1085, and dipped to a low of nt$1070 [2]. The trading volume stands at 8,408 shares, with a turnover rate of 0.03% [2]. The price fluctuation highlights the stock’s struggle to maintain its value above the nt$1100 threshold [1]. This struggle is attributed to currency appreciation and its impact on foreign investment strategies [1].

analyst perspectives on tsmc

Analyst lin han-wei points out that the strength of the new taiwan dollar is a key factor preventing tsmc’s stock from consistently staying above nt$1100 [1]. He suggests that foreign investors find it more economical to purchase tsmc’s adrs directly rather than converting us dollars into new taiwan dollars to buy local shares [1]. Despite this, lin han-wei views the rising adr as a positive sign, indicating that the local stock price will eventually catch up, driven by the fundamental value linkage between the two [1].

broader market influence

The positive sentiment surrounding tsmc is also influenced by the strong performance of us indices and nvidia [1]. The s&p 500, nasdaq, and phlx semiconductor index are all hitting new highs, reflecting overall market strength [1]. Nvidia’s stock, a leader in ai, reached a new high of $160.98, further bolstering confidence in the semiconductor sector [1]. This broader market strength reinforces the positive outlook for tsmc, suggesting potential for future growth [1].

expert says buy the dip

According to veteran analyst du jinlong, tsmc’s stock at nt$900 is a thing of the past [3][5]. Du Jinlong suggests investors should buy in batches when the stock price dips [5]. He noted the stock rebounded strongly from nt$785 in april, rising nearly 40% to nt$1085 [3]. Du Jinlong believes that if tsmc’s july 17 earnings call is positive, the stock could challenge its previous high of nt$1160 and potentially reach nt$1600 to nt$2000 [3].

Bronnen

tsmc stock currency impact