Here’s Why Taiwan Semiconductor (TSM) Plummeted in Q1

2 months ago 28

Soumya Eswaran

Wed, Apr 16, 2025, 8:24 AM 3 min read

Middle Coast Investing, an concern advisor firm, released its first-quarter capitalist letter. A transcript of the missive tin beryllium downloaded here. Middle Coast Investing had a hard but manageable archetypal quarter, but everyone has suffered since the Liberation Day clang astatine the opening of the 2nd quarter. To negociate the volatility, the steadfast decided to summation currency extremity levels by astir 5% for each portfolio. In the quarter, the steadfast sold 3% much than it bought. In Q1 2025, the US Portfolios returned -3.7% compared to -4.6% for the S&P 500. It’s Core U.S. portfolios returned -0.7% portion Russell 2000 returned -9.8%, S&P 600 returned -9.3% and Nasdaq generated -10.4% for the aforesaid period. However, its European Portfolios appreciated by 9.2%. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its archetypal 4th 2025 capitalist letter, Middle Coast Investing emphasized stocks specified arsenic Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures, packages, tests, and sells integrated circuits and different semiconductor devices. The one-month instrumentality Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was -9.46%, and its shares gained 13.16% of their worth implicit the past 52 weeks. On April 15, 2025, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) banal closed astatine $157.33 per stock with a marketplace capitalization of $700.02 billion.

Middle Coast Investing stated the pursuing regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) successful its Q1 2025 capitalist letter:

"Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the institution we ain with the astir evident geopolitical risk, and we chopped our presumption successful half. I cognize that if Taiwan-China flares up the harm volition widen overmuch wider, but TSM would look to beryllium the archetypal domino there. And it’s not arsenic if Taiwan is having an casual clip of it with the existent U.S. administration."

$10.74B Q1 Profit Expected Amid U.S. Tariff Threats

A close-up of a analyzable web of integrated circuits utilized successful logic semiconductors.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is successful 9th presumption connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 186 hedge money portfolios held Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) astatine the extremity of the 4th fourth compared to 158 successful the 3rd quarter. The fourth quarter revenue of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) accrued 14.3% sequentially successful NT. While we admit the imaginable of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) arsenic an investment, our condemnation lies successful the content that AI stocks clasp greater committedness for delivering higher returns, and doing truthful wrong a shorter timeframe. If you are looking for an AI banal that is arsenic promising arsenic NVIDIA but that trades astatine little than 5 times its earnings, cheque retired our study astir the cheapest AI stock.

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