• 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

Asian markets open: most futures lower; Sensex to...

June 6, 2025

Here’s why the Nifty 50 Index may surge...

June 6, 2025

Circle stock price prediction: is CRCL a good...

June 6, 2025

Trump-Musk fallout risks SpaceX deals, Tesla’s standing, and...

June 6, 2025

European markets open: Stoxx 600 flat ahead of...

June 6, 2025

Musk, Trump dial back feud as White House...

June 6, 2025

XRP slips 2.5% to $2.14 as Trump-Musk clash...

June 6, 2025

China’s May export growth seen slowing to 5.0%...

June 6, 2025

FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo,...

June 6, 2025

Citi downgrades CEG stock despite Constellation Energy’s big...

June 5, 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

  • Relative Drug Pricing is Bad Medicine

    June 6, 2025
  • Want to Fix Medicaid? Look to Milton Friedman

    June 6, 2025
  • Want to Fix Medicaid? Look to Milton Friedman

    June 6, 2025
  • Relative Drug Pricing is Bad Medicine

    June 6, 2025
  • Asian markets open: most futures lower; Sensex to open flat as RBI policy decision looms

    June 6, 2025
  • Here’s why the Nifty 50 Index may surge after the RBI rate cut

    June 6, 2025

Editors’ Picks

  • 1

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

    February 20, 2025
  • 2

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

    February 21, 2025
  • 3

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

    February 23, 2025
  • 4

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

    February 25, 2025
  • 5

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025
  • 6

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

    March 1, 2025
  • 7

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

    March 1, 2025

Categories

  • Economy (1,373)
  • Editor's Pick (143)
  • Investing (165)
  • Stock (882)
  • 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

Nikkei 225 forecast: Sony, Softbank, Honda, Rakuten,...

May 11, 2025

AB Foods shares slip on sugar woes,...

April 29, 2025

Burger King UK seeks £40M refinancing to...

March 20, 2025