TSMC(TSM) The Motley Fool·2025-04-16 22:06Core Viewpoint - TSMC's stock has experienced significant sell-offs due to multiple bearish catalysts, including new export restrictions on Nvidia's processors and increased tariffs on China, leading to a year-to-date decline of 23% [2][3]. Group 1: Stock Performance - TSMC's share price closed down 3.6% on Wednesday, having dropped as much as 5.6% during the session, while the S&P 500 and Nasdaq Composite fell 2.2% and 3.1%, respectively [1]. - The stock's valuation has decreased in light of recent news and market conditions [2]. Group 2: Market and Regulatory Environment - Nvidia is now required to obtain an export license to sell its H20 processors to China, which may prevent sales of this product in the Chinese market [3]. - New restrictions on advanced AI semiconductors are expected to pressure overall demand for TSMC's manufacturing services [4]. - The U.S. has raised tariffs on China to 245%, and Federal Reserve Chairman Jerome Powell has indicated that interest rate cuts will be delayed until the inflationary impacts of these tariffs are better understood [5]. Group 3: Future Outlook - TSMC plans to increase prices on its 4nm chips by 30% due to surging demand, suggesting strong sales growth in the near term [6]. - The company is positioned to be a leading manufacturer of advanced chips for AI applications, but faces significant geopolitical risks due to U.S.-China tensions [6].