TSMC's ADRs climbs to ninth rank globally

Taipei [Taiwan], June 11 : Taiwan Semiconductor Manufacturing Company (TSMC) climbed to the ninth spot in global market cap for its American depositary receipts (ADRs), overtaking U.S. investment giant Berkshire Hathaway, according to data from company market cap.

According to a report of Focus Taiwan, the milestone followed a positive session on Wall Street, buoyed by optimism over U.S.-China trade negotiations in London. The tech-heavy Nasdaq rose 0.31 per cent, while the Philadelphia Semiconductor Index surged 1.96 per cent.

In the Monday trading session, TSMC's ADRs responded with a 0.89 per cent gain to close at USD 207, raising their market cap to USD 1.07 trillion, just ahead of Berkshire Hathaway's USD 1.06 trillion, which saw a 0.04 per cent dip.

Following the overnight tech rally, TSMC shares on Taiwan's main board jumped 3.98 per cent on Tuesday to finish at NTD 1,045.00 (USD 34.84), their highest closing level since February 6. The surge added NTD 1.03 trillion to TSMC's market cap in one day, bringing it to NTD 27.09 trillion.

TSMC still traded at a relatively low price-to-earnings multiple of 17-18, compared with 31-32 recorded by American artificial intelligence Nvidia Corp., adding there is room for TSMC to play catch-up and move higher as global demand for AI applications stays strong, said MasterLink Securities analyst Tom Tang.

The rally also fuelled a 322-point boost in the Taiex, Taiwan's benchmark index, which gained 2.07 per cent to close at 22,242.14. The index now sits comfortably above the key 120-day moving average of 22,010 points.

However, MasterLink has revised its 2025 earnings forecast for TSMC down to NTD 59 per share, from a previous NTD 61-62 estimate, due to a stronger Taiwan dollar.

TSMC said that every 1 per cent appreciation of the Taiwan dollar against the U.S. dollar reduces its gross margin by 0.4 percentage points.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor