Taiwan Semiconductor Just Threw Cold Water on Tariff Concerns
Taiwan Semiconductor's products remain in high demand among end users.
TSMC is building plants in the U.S. to avoid tariffs.
10 stocks we like better than Taiwan Semiconductor Manufacturing ›
Tariff effects are still front and center in many investors' minds. As we approach Aug. 1, the date when many reciprocal tariffs take effect, the entire economic landscape could shift. Although deals are being announced, many questions remain regarding their impact.
However, there is one company that stands out by saying it hasn't seen any effect: Taiwan Semiconductor (NYSE: TSM). Taiwan Semiconductor's CEO C.C. Wei stated on its Q2 conference call that they "have not seen any change in our customers' behavior so far" regarding tariffs.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
This is a significant development for TSMC, but does it suggest that the rest of the market is overreacting to tariffs?
Semiconductors aren't subject to reciprocal tariffs
There are a few key points to understand regarding tariffs and semiconductors. First, semiconductors are currently exempt from all reciprocal tariffs. Additionally, they're excluded from the base 10% blanket tariff.
However, that could shift as the Aug. 1 reciprocal tariff date arrives. If those tariffs are implemented, other goods could be subject to higher tariff rates than semiconductors. This means investors need to be cautious about drawing conclusions about how tariffs are being applied to one industry versus another. Still, it shows that the end users of products with their chips in them aren't slowing down purchases.
A second critical factor is Taiwan Semiconductor's unique position within the chip industry. There aren't many choices when it comes to chip foundries with high-end technology. Intel (NASDAQ: INTC) has failed to launch many of the cutting-edge chip nodes, and low chip yields have plagued Samsung. This leaves TSMC at the top of the high-end semiconductor fabrication pyramid, making it a critical partner for tech giants like Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL).
As a result, these companies are somewhat compelled to deal with the tariffs rather than seeking an alternative. But this is only temporary. TSMC is working to avoid tariffs by accelerating the build-out of its U.S. chip production facilities in Arizona. This will allow U.S. clients to avoid any tariffs on foreign goods.
While Taiwan Semiconductor may not be experiencing any effects from tariffs, investors need to be cautious about drawing conclusions from its experience to the broader market. It's in a unique position that essentially requires its clients to deal with any tariff levies that come up, but it's actively working on increasing U.S. chip production capabilities to sidestep any tariffs.
With TSMC's strong position, the company also becomes an intriguing stock to consider, as few companies hold a more powerful position than TSMC.
Taiwan Semiconductor looks like an excellent buy at these prices
Taiwan Semiconductor's bull case is fairly straightforward: Its clients will use more chips and increasingly advanced chips over the next few years. This seems like a no-brainer investment thesis, and management's bold five-year growth projections back it up.
Starting with 2025, management projects that AI-related revenue will grow at a 45% compound annual growth rate (CAGR) over the next five years, with total revenue increasing at nearly a 20% CAGR. That's easily market-beating growth, yet Taiwan Semiconductor's stock trades at nearly a market-average forward price-to-earnings (P/E) ratio.
TSM PE Ratio (Forward) data by YCharts
Taiwan Semiconductor's 24 times forward earnings is nearly identical to the S&P 500 's (SNPINDEX: ^GSPC) 23.8 times forward earnings. However, with market-beating growth expected, this makes the price well worth paying, and I think Taiwan Semiconductor's stock looks like a great buy right now due to its projected growth, reasonable price, and strong position in the chip fabrication industry.
Should you invest $1,000 in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!*
Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of July 21, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
7 minutes ago
- Globe and Mail
FISERV INVESTOR DEADLINE: Robbins Geller Rudman & Dowd LLP Announces that Fiserv, Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit
The law firm of Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Fiserv, Inc. (NYSE: FI) common stock between July 24, 2024 and July 22, 2025, both dates inclusive (the 'Class Period'), have until September 22, 2025 to seek appointment as lead plaintiff of the Fiserv class action lawsuit. Captioned City of Hollywood Police Officers' Retirement System v. Fiserv, Inc., No. 25-cv-06094 (S.D.N.Y.), the Fiserv class action lawsuit charges Fiserv as well as certain of Fiserv's top current and former executives with violations of the Securities Exchange Act of 1934. If you suffered substantial losses and wish to serve as lead plaintiff of the Fiserv class action lawsuit, please provide your information here: CASE ALLEGATIONS: Fiserv provides payments and financial services technology solutions. The Fiserv class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) due to cost issues and other problems with its Payeezy platform, Fiserv forced Payeezy merchants to migrate to its Clover platform; (ii) Clover's revenue growth and gross payment volume ('GPV') growth were temporarily and unsustainably boosted by these forced conversions, which concealed a slowdown in new merchant business; (iii) shortly after these conversions, a significant portion of former Payeezy merchants switched to competing solutions due to Clover's high pricing, inadequate customer service, and other issues; and (iv) as a result of these merchant losses, Clover's GPV growth was significantly slowing, and its revenue growth was unsustainable. The Fiserv class action lawsuit further alleges that on April 24, 2025, Fiserv reported Clover GPV growth of only 8% for the first quarter of 2025, a material stepdown from 2024 GPV rates of between 14% and 17%. Fiserv attributed this slowing growth to lower 2025 transaction volume from Payeezy merchants who had converted to Clover, according to the complaint. The Fiserv class action lawsuit alleges that on this news, the price of Fiserv common stock fell more than 18%. Then, on May 15, 2025, the Fiserv class action lawsuit further alleges that Fiserv disclosed that GPV growth deceleration would continue through 2025. On this news, the price of Fiserv common stock fell a further 16%, according to the complaint. Finally, on July 23, 2025, Fiserv lowered the top end of its full-year organic growth guidance range and confirmed that its quarterly organic revenue in the Merchant segment had decelerated to 9% year-over-year from 11% in the previous quarter, the complaint alleges. On this news, the price of Fiserv common stock fell nearly 14%, according to the Fiserv class action lawsuit. THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Fiserv common stock during the Class Period to seek appointment as lead plaintiff in the Fiserv class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Fiserv class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Fiserv class action lawsuit. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Fiserv class action lawsuit. ABOUT ROBBINS GELLER: Robbins Geller Rudman & Dowd LLP is one of the world's leading law firms representing investors in securities fraud and shareholder litigation. Our Firm has been ranked #1 in the ISS Securities Class Action Services rankings for four out of the last five years for securing the most monetary relief for investors. In 2024, we recovered over $2.5 billion for investors in securities-related class action cases – more than the next five law firms combined, according to ISS. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs' firms in the world, and the Firm's attorneys have obtained many of the largest securities class action recoveries in history, including the largest ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information: Past results do not guarantee future outcomes. Services may be performed by attorneys in any of our offices.
Globe and Mail
7 minutes ago
- Globe and Mail
Japanese technology giant Panasonic announces a new chief as its profits barely hold up
TOKYO (AP) — Japanese electronics and technology company Panasonic has chosen a new chief executive after eking out a 1.2% rise in its first quarter profit. Kenneth William Sain, a former Boeing executive, will replace Yasuyuki Higuchi as Panasonic's president and chief executive in April 2026, the company said Wednesday. Sain joined Panasonic in 2019 as CEO of Panasonic Avionics. 'Ken is an exceptional leader with extensive global experience and a deep understanding of business and technology,' Higuchi said in a statement. Panasonic Holdings Corp.'s April-June profit totaled 71.46 billion yen ($483 million), up from 70.6 billion yen. Its quarterly sales declined 10.6% from last year to 1.9 trillion yen ($12.8 billion). The Osaka-based maker of home appliances, solar panels and batteries for Tesla vehicles kept its full year profit forecast unchanged at 310 billion yen ($2.1 billion), down 15% from the previous year. Panasonic said the impact from U.S. President Donald Trump's tariffs was not yet fully factored in. The company said it will try to minimize the effect on its operating profit with cost cuts and other measures. Consumer electronics sales were strong in Japan, Panasonic said, while they were also healthy in China, supported by subsidies. On the positive side, it said demand for AI servers and air-conditioners was expected to grow. But concerns remain about slowing demand for electric vehicles because of U.S. tariffs and the ending of tax credits. Panasonic also said it's planning to get rolling later this year its new lithium-ion battery factory in Kansas, whose start has been delayed. Panasonic said in May that it was slashing its global workforce by 10,000 people, half in Japan and half overseas, to become 'lean.' The job cuts amount to about 4% of its workforce.
Globe and Mail
37 minutes ago
- Globe and Mail
Introducing the Meshy 5 Preview: Smarter AI, Cleaner Models, Bigger Animation Potential
Santa Clara, CA, July 29, 2025, (ACN Newswire) - the world's leading AI-powered 3D content generation platform, has launched the Meshy 5 Preview, offering early access to the next generation of AI 3D model generator. Built on the strong foundation of Meshy 4, this preview version introduces smarter generation tools, enhanced image alignment, sharper geometry, and over 500 new animations—empowering creators to build faster, cleaner, and more creatively than ever before. Trusted by 3 Million Creators – The Platform of Choice for Game Developers With over 30 million 3D assets generated and a community of more than 3 million creators, Meshy has become the go-to AI platform for game developers, VFX artists, and 3D content professionals worldwide. Recognized by Andreessen Horowitz (a16z) as the only 3D tool featured in its list of 'Most Popular AI Tools Among Game Developers,' Meshy is redefining how digital worlds are built—with speed, accuracy, and creative control. What's New in Meshy 5 Preview Stronger Image Alignment: Mesh structures now more precisely match the shape and proportions of input images — with support for multi-view input to generate more complete 3D models. Razor-sharp Geometry: From hard-surface mechs to organic characters, edges are sharper and forms more defined. Advanced AI Tools: Now supports Kontext for multi-view generation and a smart AI Prompt Helper to make prompting faster and easier. 500+ New Animations: A dramatically expanded animation library for rigged characters, empowering developers and artists with more expressive motion capabilities. 'The multi-view support and sharper geometry have made our modelling workflow twice as fast with much less cleanup,' said Victoria C., a senior 3D environment artist at an indie game studio and early Meshy 5 Preview tester. 'This version brings us much closer to using AI directly in our production pipeline.' From Meshy 4 to Meshy 5 Preview: A Foundation Reinforced About one year ago, Meshy introduced Meshy 4, which brought improvements in geometry quality, Text to 3D workflow, and retry functionality. Meshy 5 Preview builds on that foundation, offering enhanced mesh coherence, fewer visual defects, and a more structured modelling-to-texturing pipeline—allowing creators to move from concept to completion with unprecedented speed and clarity. Whether generating stylized concepts or rigged production assets, Meshy empowers studios to accelerate creative pipelines, reduce manual workloads, and retain full artistic control. The platform integrates seamlessly with tools like Unity, Unreal Engine, Blender, and ZBrush, and supports advanced rigging and animation workflows out-of-the-box. What Sets Meshy Apart Powered by cutting-edge foundation models, Meshy combines advanced AI technology with industry-leading product capabilities to deliver unparalleled value. Its unique features and user-centric design have established Meshy as the world's leading AI 3D model generator. Key differentiators include: Hyper-Realistic Texture Generation – Capable of producing highly detailed, natural-looking textures that align with industry standards. Advanced Rigging and Animation Support – Offers ready-to-use rigged models alongside an expanding motion library, significantly streamlining animation workflows. A Thriving Community for Remix & Creative Collaboration – Hosts a vast repository of high-quality, customizable assets, enabling creators to easily remix and build upon existing work. Unmatched Workflow Flexibility – Supports both white and textured model outputs, along with texture swapping via text or images. Artists can effortlessly re-style assets — for example, transforming a realistic model into an ink-wash aesthetic — without starting from scratch. Real Creators. Real Workflows. Real Impact. From indie game developers and VFX artists to educators and avatar designers, creators around the world are embracing Meshy 5 Preview to reimagine the way they build, teach, and tell stories in 3D. Whether it's speeding up asset production, unlocking new creative directions, or making 3D design accessible to more people—Meshy is becoming a core part of real-world workflows. Explore how Meshy is powering next-gen creativity—one creator at a time. Sivan Okcu – Avatar Creator for Second Life Uses Meshy's Text to 3D and Image to 3D features to produce stylized avatars faster, reduce costs, and grow his virtual business. 'I can explore more styles, lower prices, and sell more—all without sacrificing quality.' Read Sivan's story → Skylyfe Inc. – Tech Education for Underserved Youth Empowers students aged 10–30 with hands-on 3D design using Meshy in an 8-week program focused on 3D printing, AR, and VR. 'Students said it felt like printing things from your mind into real life.' Read the Skylyfe story → David Zhang – Indie Game Developer (Remnants of R'lyeh) Builds weapons, creatures, and deep-sea props using Meshy's Text-to-3D, accelerating production and enriching a Lovecraft-inspired horror world. 'Meshy helped bring my game's vision to life—faster, cheaper, and more creatively.' Read David's story → Whether you're a creator with a cool workflow or an influencer interested in collaborating, share your project with us at marketing@ Distributed by Pinion Newswire. All rights reserved. ]]> Source: Copyright 2025 ACN Newswire . All rights reserved.
