President Trump announced The last round of trading tariffsAiming at a wide range of goods from most of the merchant partners of the United States, with special influence on the retail sector.
However, to the surprise of many investors, the recent press conference sets out the specifics, in particular, excluded one large industry: semiconductors.
TAIWAN SEMICONDUCTOR ManUFACTURING today
Taiwan semiconductor production
From 09:41 East time
- 52-week range
- $ 125.78
▼
$ 226.40
- Dividend yield
- 1.59%
- P/e ratio.
- 19.25
- Value is valuable
- $ 220.00
Semiconductor products and export of chips from Taiwan were left in the list of tariffs, getting rid of the sector from painful volatility, which rooted a wider S&P 500 during the announcement.
Despite the fact that this detail could be missed from a wider market uncertainty and sharp prices, experienced investors can combine points and realize the potential.
Companies related to the production of chips and semiconductor production, for example, as Taiwan semiconductor production NYSE: TSMIt can benefit from this liberation, faced with fewer meetings with financial stability and future growth.
Give the market to breathe
However, this is not a signal to buy right away. Investors must focus on preparing in advance – now determine potential winners so that they are ready to act when the best settings appear. Bearing a clear fundamental narrative will be crucial, since the uncertainty will begin to display.
Taiwanese semiconductor is especially well located. The company committed 160 billion dollars To create infrastructure in Ohio and Arizona, agreed with the accent of President Trump on Return of production to the United States. His cooperation with the administration can help explain why the sector was spared in the latest tariffs-establishing a stage for strong long-term growth.
Increase for the Taiwanese semiconductor reserve
Knowing that this could be a turnout during previously declared tariffs, institutional investors decided to take a chance to buy on the eve of the event. Over the past quarter up to 9.8 billion dollars. The United States of institutional capital fell into the Taiwanese semiconductor, which is a sign of trust, despite all the uncertain uncertainty.
Then, in the current quarter (still only April 2025), An additional 16 million dollars were purchased in this action. Of course, these new buyers are currently sitting at losses, since the action has decreased from the date of their purchase, but this is that large institutions can withstand without any problems.
On the other hand, this is not a situation that most retail investors can – or want to find themselves, given that most posts will be a large share of their portfolio and, therefore, increase their volatility. However, there are other sensors that need to be considered here.
Short sellers understand that, despite the recent steps in the scheme, the juice is no longer worth compressing the fact that the chips were delivered from tariffs, creating a more stable environment for the company. Investors can consider this topic in the game, since the short percentage of Taiwan semiconductor has decreased by only 7% only in the last month, which is a sign of potential bear surrender.
Another check is the consensus price set by Wall Street analysts, which currently costs $ 220 per share. Where does the shares trade today, this point of view implies Pure potential up to 50.8% To provide investors with relief from current volatility and trembling ability in S&P 500.
Then in this transaction there is a final sensor, and despite the fact that the price of shares may have fallen in this violent sale, the market is still very clearly understood where the cost of the company is. Because in the Taiwanese semiconductor shares, the transaction The ratio of the price for the book (p/b) 7.2xHe gives a clear prize of the rest The average assessment of the computer sector is 5.7x today.
It is far from “expensive”, there is a clearly defined reason why the market still wants to overpay for this action, and now investors should also be clear, since today it is beyond tariff uncertainty.
Before considering the Taiwanese production of semiconductors, you will want to hear this.
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