American depositary receipts (ADRs) of contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) rose sharply overnight to push up in market value to the sixth-largest in the world, according to data released by the Web site companiesmarketcap.
The market capitalization of TSMC’s ADRs rose US$9.21 or 2.80 percent to close at US$338.45 on Monday as tech stocks staged a significant rebound in line with the broader market after US President Donald Trump delayed strikes on Iran’s power plants.
The rebound pushed up the market value of TSMC’s ADRs to US$1.75 trillion, placing them sixth and up one notch from a session earlier. Saudi Arabian Oil Co fell from sixth to seventh after its ADRs fell 0.15 percent to push down its market capitalization to US$1.74 trillion on Monday.
Photo: Bloomberg
TSMC’s ADR listing enabled it to tap into foreign investor flows, cementing its status as a US investor favorite — particularly as part of the artificial intelligence (AI)-driven rally. Beyond active investors, significant passive inflows from exchange-traded funds tracking US-listed shares have further boosted its valuation relative to the Taipei listing. At one point last year, the price gap between the two markets exceeded 30 percent.
In the wake of its ADR’s strong showing, TSMC’s Taipei-listed shares yesterday opened up 2.23 percent to NT$1,850 on the Taiwan Stock Exchange (TWSE).
The opening surge helped TSMC’s market cap recover to NT$47.97 trillion (US$1.5 trillion) in Taiwan before the stock pared early gains on profit-taking, closing unchanged at NT$1,810.
Caution toward TSMC’s share price movement remained in place as crude oil prices bounced back, indicating lingering Middle East war-linked uncertainties, while the market stayed upbeat about its business outlook amid the AI boom, dealers said.
TSMC shares, which account for more than 40 percent of local main board’s total market value, had fallen 9.27 percent on a sell-off by foreign institutional investors since the US and Israel attacked Iran at the end of last month, while the TAIEX had lost 7.91 percent during the same period, TWSE data showed.
Additional reporting by Bloomberg
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