Susquehanna analyst stated that Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) has strong business resilience than expected, reiterating an "outperform" rating.

Despite the negative sentiment in the market triggered by the latest tariff measures announced by US President Trump, some analysts point out that Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's business may be more resilient than expected. Susquehanna analyst Mehdi Hosseini reiterated his "outperform" rating on Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR in a report released on Tuesday. He stated, "The latest market survey shows that Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's wafer shipments and average selling prices (ASP) trend remains stable." Following this positive news, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR rose by 4.1% in early trading on Tuesday. However, news later in the day indicated that the US tariff rate on Chinese imports would officially increase to 104% at 12:01 am Eastern Time on Wednesday, signaling further escalation in trade tensions between the US and China. This had a negative impact on the Nasdaq and S&P 500, which turned lower at midday. On Tuesday, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR closed down by 3.28% at $141.37. Hosseini pointed out that, according to regulations regarding tariffs, if at least 20% of the value of an imported product is "produced or transformed" in the US, the tariff will only apply to the non-US portion. Given that about 70% of Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's revenue comes from US customers, some of its chip products may meet the "US content value" requirement, potentially reducing the overall tariff level to be imposed. "Considering that Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's customers are mainly concentrated in the US, the actual impact of this new tariff policy on them may be limited." Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR currently holds a leading position in the global high-end chip manufacturing sector and is one of the major producers of artificial intelligence chips. Its clients include tech giants such as NVIDIA Corporation, Apple Inc., Qualcomm, and AMD. It not only provides core processors for Apple Inc.'s iPhone but also manufactures Qualcomm's smartphone chipsets, as well as high-performance computing chips for NVIDIA Corporation and AMD. Analysts believe that Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's core position in the global semiconductor industry chain, along with its close collaborations with US tech companies, may provide some buffer against new trade barriers. Despite ongoing political risks, the company's current orders and business fundamentals remain strong.