• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

TSMC stock under pressure from tariff concerns, but analysts stay bullish

by March 29, 2025
by March 29, 2025

Taiwan Semiconductor Manufacturing Co. (TSMC) has faced a difficult year, with its stock declining 15% amid growing concerns over potential US tariffs on semiconductor imports and its substantial investment in the United States.

The chipmaker, a key supplier for companies such as Apple and Nvidia, has committed $165 billion to US expansion, but it remains uncertain whether it would receive an exemption from any potential tariffs imposed by a future Trump administration.

Investor sentiment has also been affected by a broader market shift away from stocks tied to artificial intelligence (AI), which had driven semiconductor shares to record highs in 2023.

This combination of political uncertainty and sector rotation has weighed on TSMC’s performance.

However, analysts at JPMorgan remain optimistic about the company’s resilience and market position.

Despite ongoing uncertainties, Hariharan reaffirmed an Overweight rating on TSMC stock, maintaining a price target of 1,500 New Taiwan dollars (NT$).

Tariffs to have limited impact on TSMC’s earnings: JPMorgan

J.P. Morgan analyst Gokul Hariharan downplayed the risk of tariffs significantly affecting TSMC’s earnings, stating that the majority of the company’s exports are directed to regions outside the United States.

“We believe that a reciprocal tariff on direct Taiwan exports into the US is unlikely to have much effect on TSMC, given most of the exports are to other regions. The key impact would be if the US were to impose [an] indirect tariff on semiconductors coming from Taiwan as a part of goods imported into the US,” Hariharan said in a research note.

Even in a worst-case scenario, Hariharan believes TSMC has enough pricing power to adjust its costs accordingly, mitigating any negative impact on earnings.

Additionally, he suggested that the company’s commitment to expanding US manufacturing could make it less vulnerable to sector-specific tariffs.

No role in Intel rescue plan, says JPMorgan

Another major question surrounding TSMC in recent weeks has been whether it might play a role in rescuing Intel’s struggling foundry business.

Reports suggested that TSMC had explored the possibility of a joint venture with Nvidia and Broadcom to take over some of Intel’s chip-making operations.

However, JPMorgan believes this scenario is unlikely.

Hariharan stated that TSMC would only enter into such an arrangement under “very extenuating circumstances” or if there were “very lucrative financial rewards.”

This presents a double-edged scenario for Intel—while it dampens hopes for an immediate cash injection, investors optimistic about the stock may welcome the company’s continued control over its foundry operations.

Intel has been working to regain its position as a leading semiconductor manufacturer, touting its 18A process as a major breakthrough.

However, JPMorgan sees Intel continuing to rely on TSMC for chip production due to delays in mass manufacturing of the 18A process.

The stock closed 0.6% lower at NT$952 in Taiwan on Friday, while its ADRs edged up 0.1% in premarket trading.

The post TSMC stock under pressure from tariff concerns, but analysts stay bullish appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Beyond car stocks: Donald Trump’s tariffs threaten global auto supply chains
next post
Why did activist investor Elliott build a short position in Shell stock?

Related Posts

Asia markets open: Nikkei hits 51,000 for the...

October 29, 2025

Morning brief: AWS’s $5B South Korea plan; Trump...

October 29, 2025

US retail power prices soar: data centers and...

October 29, 2025

China resumes US soybean imports as trade deal...

October 29, 2025

Amazon’s AWS to fuel South Korea’s AI hub...

October 29, 2025

Visa expands stablecoin network across four blockchains

October 29, 2025

US–China trade talks shift focus to AI chips,...

October 29, 2025

Europe markets open: Stocks flat as Fed looms;...

October 29, 2025

Banijay to acquire majority stake in Tipico creating...

October 28, 2025

Cathie Wood warns investors to brace for correction,...

October 28, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • Cowboy Diplomacy: Ranchers Reject Tariff Rhetoric

    October 29, 2025
  • We Have Never Been Austere

    October 29, 2025
  • Asia markets open: Nikkei hits 51,000 for the first time; Sensex jumps 100 points

    October 29, 2025
  • Morning brief: AWS’s $5B South Korea plan; Trump on Kim meet; Oil steady

    October 29, 2025
  • US retail power prices soar: data centers and supply constraints drive up costs

    October 29, 2025
  • China resumes US soybean imports as trade deal nears final stage

    October 29, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Pop Mart reports 188% profit surge, plans aggressive global expansion

    March 26, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 5

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 6

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 7

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025

Categories

  • Economy (3,045)
  • Editor's Pick (297)
  • Investing (185)
  • Stock (2,072)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Tesla’s China sales edge up 0.8% in...

July 2, 2025

Apollo backs £4.5bn loan for delayed Hinkley...

June 21, 2025

Morgan Stanley upgrades Brazil’s BB Seguridade rating...

September 20, 2025