tsmc surges to six-month peak: nvidia's glow boosts stock before earnings

2025-07-16 tsmc

Taipei, Wednesday, 16 July 2025.
Taiwan Semiconductor Manufacturing Company (TSMC) saw its stock price jump to NT$1,125 in Taiwan. This is the highest level in six months. The surge came just before the earnings announcement. NVIDIA’s strong performance drove this increase. TSMC’s American depositary receipts (ADR) also experienced gains. Experts are advising caution. Investors should temper expectations before the earnings conference. An analyst at Lun Yuan Investment Consulting noted TSMC’s financial conference is scheduled for tomorrow afternoon.

stock performance

TSMC’s stock in Taipei reached NT$1,125 intraday on July 15, 2025, representing an increase of NT$15, or 1.35% [1]. Simultaneously, NVIDIA’s positive performance boosted TSMC’s ADR by 3.6% on Monday, July 14, 2025, closing at a record high of $236.95 [1]. This surge reflects investor confidence in TSMC’s capabilities. The stock closed at NT$1,110 on July 15, a near five-month high, following news of H20 chip sales [7]. The Taiwan Stock Exchange closed up 220.97 points, reaching 22,835.94 points [7].

expert analysis

Senior stock analyst Li Yong-nian advises caution, suggesting investors avoid chasing highs [1]. Despite positive momentum, analysts recommend a measured approach before the earnings conference [1]. Morgan Stanley’s report indicated that TSMC’s second-quarter revenue reached NT$933 billion, meeting expectations [1]. The firm also projects a 27% annual revenue growth for TSMC, setting a target price of NT$1,288 [6]. This optimism is driven by strong AI chip demand and TSMC’s dominance in advanced manufacturing [6].

market dynamics

The Taiwan Stock Exchange’s weighted index closed at 22,835.94 points on July 15, 2025, up 0.98% with a total transaction value of NT$316.951 billion [4]. Major institutional investors showed confidence, with net purchases of NT$21.287 billion [4]. Foreign investors accounted for NT$18.347 billion of these purchases [4]. Investment trusts, however, sold a net NT$431 million worth of shares, focusing on electronic and financial stocks [4]. Proprietary traders bought a net NT$3.371 billion worth of shares [4].

nvidia h20 chip approval

NVIDIA CEO Jensen Huang announced that the U.S. government has approved the sale of H20 chips to China [7]. This decision is expected to help NVIDIA clear previously restricted inventory [7]. The H20 chip is a modified version of NVIDIA’s H100, designed to comply with U.S. export regulations [7]. The approval is seen as a positive sign for TSMC, the chip’s manufacturer, although analysts are still assessing the full impact [7]. The news has boosted TSMC’s supply chain [7].

broader economic context

The Ministry of Labor reported an increase in reduced work hours, reaching a six-month high of 3,196 people [1]. This indicates potential economic headwinds despite the stock market’s positive performance [1]. An American investment bank has raised target prices for companies like Taiko, Taya, and Kinsus, reflecting optimism about the AI trend’s benefits for CCL [1]. These factors highlight the complex interplay of economic forces influencing TSMC’s stock and the broader market [1].

Bronnen

tsmc stock earnings conference