tsmc's taipei shares climb, but adr performance steals the show

2025-07-24 tsmc

taipei, Thursday, 24 July 2025.
taipei-listed tsmc shares saw a slight increase, closing at nt$1155. The gains were overshadowed by the company’s american depositary receipts, which outperformed tsmc’s local shares by over two times. Analysts are urging caution. Uncertainty surrounding potential us-taiwan tariffs and potential recall results are to blame. Experts advise investors to wait for a more favorable entry point, suggesting a retest of key moving averages before making any moves.

taiwan stock performance

On July 24, 2025, tsmc’s shares listed on the taipei stock exchange (2330.tw) saw a modest increase of nt$10, reaching nt$1155, which translates to a 0.87% gain [1]. This increase occurred amidst broader market activity, with the taiwan stock market opening at 23,373.67 points, a gain of 55 points [1]. Despite the positive movement, the performance of tsmc’s taipei-listed shares lagged behind its american depositary receipts [1]. Senior stock analyst xu bojie suggests investors should remain cautious, especially given uncertainties surrounding potential us-taiwan tariff implications and recall results [1].

adr volatility and analyst recommendations

TSMC’s american depositary receipts (adr) have experienced volatility [1]. On July 23, 2025, tsmc’s adr closed at $234.60, a decrease of $4.25 or 1.78% [1]. A day earlier, on july 22, 2025, the adr closed at $238.85, down $1.55 or 0.64% [1]. Analysts attribute these fluctuations to concerns regarding potential new tariffs on imported semiconductors [1]. An analyst at global securities noted that the uncertainty surrounding tariffs is creating a cautious environment for tsmc investors [1].

tariff concerns and market impact

The u.s. government’s review of tariffs on goods from taiwan, including semiconductors, which was announced in june 2025, adds to investor apprehension [1]. Donald trump’s statement on july 23, 2025, about imposing tariffs on most countries further exacerbates these concerns [3]. These potential tariffs could significantly impact tsmc’s supply chain and profitability, particularly given that the majority of its chip manufacturing still relies on facilities in taiwan, china, india, vietnam, and mexico [7].

tsmc’s strategic importance and ai demand

Despite tariff concerns, tsmc’s strategic importance in the semiconductor industry remains strong [5]. The company’s market capitalization stands at $1.25 trillion [3]. Tsmc is benefiting from the surge in demand for ai chips, with high-performance computing (hpc) accounting for 60% of its revenue this quarter [5]. The motley fool reported that tsmc’s revenue growth is driven by ai chips and that demand for advanced chip manufacturing processes shows no signs of slowing down [5].

manufacturing costs and expansion

AMD ceo lisa su announced on july 24, 2025, that tsmc’s chips manufactured in arizona will cost 5% to 20% more than those made in taiwan [3]. TSMC anticipates that its fabs outside of taiwan will negatively impact its gross margin by approximately 2% to 3% annually, potentially increasing to 3% to 4% during later expansion phases [5]. Despite these increased costs, analysts believe tsmc’s strong pricing power will enable it to maintain robust performance in the coming years [5].

analyst ratings and market outlook

TD cowen analyst krish sankar projects that ai cloud services will drive tsmc’s revenue growth by 30% in 2025 [7]. Sankar also anticipates that ai could boost silicon usage in pcs and mobile devices within the next year [7]. Despite the positive outlook, sankar maintains a “hold” rating on tsmc with a target price of $250, citing potential tariff impacts on market demand [7]. Overall, analysts recommend caution, advising investors to monitor the stock’s performance relative to its 10-day (nt$1130) or monthly (nt$1100) moving averages before considering entering the market [1].

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tsmc stock taiwan tariffs