Analyst ratings for Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) have cooled before the financial report, with tariffs casting a shadow over the semiconductor market.

The shadow of US tariffs is looming over the global semiconductor industry. As the Trump administration's chip export controls escalate, market optimism for Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) significantly cooled before the quarterly financial report was released. Data shows that currently, nearly 93% of institutional analysts tracking Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR still maintain a "buy" rating, a proportion close to the lowest level in two years. Before the shock of President Trump's tariff policy on the global market, this proportion was close to 98%. The average target price given by analysts this month has fallen 9% from the high point at the beginning of the year to 1312 NTD, still nearly 50% higher than the current price of 855 NTD. Despite Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's first quarter sales growth exceeding expectations, institutions such as JPMorgan Chase and Deutsche Bank have issued warnings that the company may lower its full-year revenue growth expectations by 20%. Earlier this month, Capital rare downgraded its rating, and GF SEC issued a "hold" recommendation for the first time, showing a shaky market confidence. Furthermore, the tariff shockwave is being transmitted through the industry chain. Lithography giant ASML Holding NV ADR (ASML.US) admits that it is "difficult to quantify the specific impact of tariffs on the global semiconductor industry", while NVIDIA Corporation (NVDA.US) expects that the ban on selling high-end chips to China will lead to losses of billions of dollars. These warning signals have caused Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's stock price to plummet by 20% this year, with a P/E ratio falling to 14 times, lower than the three-year average of 16 times, significantly lower than the overall valuation of the Philadelphia Semiconductor Index. At the same time, risk hedge data reveals hidden market currents. Last week, the cost of options hedging against a drop in Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's US stocks rose to the highest level since 2020, showing investors' extreme concern about short-term volatility. M&G Investments fund manager Thomas Lee pointed out that although the long-term demand logic remains unchanged, "tariff uncertainty will force Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR to adopt more conservative financial forecasts in future quarters." This trade hurricane across the Pacific is reshaping the investment narrative of the global semiconductor industry - as technology leaders face policy headwinds, the market is looking for new valuation anchors.