Why Taiwan Semiconductor Mfg. Stock Just Popped
Key Takeaways
TSMC stock is a bargain. It's an even better bargain in Taiwan.
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3 min read
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investment
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July 22, 2025
04:19 PM
The Motley Fool
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TSMC stock is a bargain
Furthermore, It's an even better bargain in Taiwan
Last week, according to Bloomberg, the official market capitalization of Taiwan Semiconductor Manufacturing Company (TSM -1. 78%) stock traded on the Taiwanese stock market reached $1 trillion
No sooner did the news break than TSMC s trading on the NYSE dropped 1 (something worth watching)
Moreover, Image source: Getty Images
Arbitrage in reverse (noteworthy indeed)
Absent any other news, why might Bloomberg's report have jinxed TSMC stock today
Consider: Hitting $1 trillion in market cap sounds good news (remarkable data)
It's good news, permitting TSMC to raise cash at a good valuation to invest further in its (should it so desire) or to pay for acquisitions with richly valued stock (should it choose to do that instead)
But here's the thing: TSMC's market cap may have just hit $1 trillion in Taiwan a few days ago
Nevertheless, But here in the U. , the rapidly rising price of the company's American depositary receipts (ADRs) passed $1 trillion two months ago, in May, and gave the company an implied market cap for U (an important development)
Furthermore, Investors of $1, considering recent developments. 2 trillion
Moreover, Is TSMC stock a buy
Basically, Bloomberg may have int to celebrate TSMC's arrival to the Trillion-Dollar of companies but instead accidentally reminded American investors that they're paying a 20% premium to own the same s that Taiwanese investors are getting at a discount -- or worse, overpaying for TSMC stock by 20%
Furthermore, At the same time, I suspect this might be the reason for today's mini-sell-off
In contrast, But if it is, I also think investors need not worry, in this volatile climate
Yes, TSMC U (remarkable data)
ADRs cost more than TSMC common stock in Taiwan
Investors are paying only 20 times trailing earnings for the s (quite telling)
Nevertheless, For a stock jected to grow 21% annually over the next five years, and paying a 1. 7% dividend yield, that's not a lot, in today's market environment
And TSMC stock is still a buy (remarkable data)
Furthermore, The Author Rich Smith is a contributing Defense Analyst at The Motley Fool, covering publicly traded and emerging in defense, space, and aerospace
Additionally, Prior to The Motley Fool, Rich practiced international corporate law for Clifford Chance in Russia, and for the Russian-Ukrainian Legal Group in Moscow, Kyiv, and Washington, D
On the other hand, Conversely, In International Relations from the College of William & Mary in Virginia, a J (something worth watching)
Furthermore, From the University of Baltimore, and language certification from the International Institute of Russian Language & Culture in Tver, Russian Federation (remarkable data)
Nevertheless, Fun fact: Canada's The Globe and Mail him in an article titled, "Ex-lawyer one of the best stock pickers since 2009 (noteworthy indeed). " TMFDitty X @RichSmithFool Rich Smith has no position in any of the stocks mentioned
The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing
The Motley Fool has a disclosure policy.
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