Taiwan Semiconductor Stock Tumbles As Tariff Fears Spark Global Tech Selloff

Taiwan Semiconductor Manufacturing Co TSM stock was down close to 10% Monday in Taiwan, in line with Taiwan’s tech-dominated stock index Taiex.

Virtually every one of Taiex’s 1,000-plus components fell in Monday trading. The selloff signifies a global selloff triggered by President Donald Trump’s tariff hikes.

Trump has never lost any opportunity to verbally attack Taiwan for allegedly stealing U.S. semiconductor technology, leading to huge trade deficits for Washington.

Also Read: Taiwan Semiconductor Is Down 15% Year-To-Date And Investors Are Concerned About Its Expansion Plans

He also slammed Taiwan for the lack of a defense treaty, as the U.S. is a key military backer of Taiwan. Trump also suggested scrapping U.S. subsidies to chipmakers like Taiwan Semiconductor to build fabs in the country to boost its semiconductor position.

Taiex lost 16% year-to-date, coinciding with U.S.-imposed tariffs. Taiwan Semiconductor, which has the top weighting in the index at more than one-third, slid by the exchange’s daily limit of 10%, Bloomberg reports.

Steven Tseng of Bloomberg Intelligence expects the tariffs to suppress consumer demand, indirectly reducing orders for Taiwan Semiconductor-manufactured chips.

Taiwan Semiconductor’s U.S.-traded shares slumped 14% on Thursday and Friday, coinciding with the Taipei holiday.

Goldman Sachs downgraded Taiwan equities to underweight, citing high exposure to U.S. exports, among other reasons.

Foreign investors sold off $13 billion of Taiwanese securities in March. Taiwan Semiconductor stock plunged over 27% year-to-date according to Bloomberg.

Taiwan Semiconductor Stock Prediction For 2025

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Taiwan Semiconductor, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Taiwan Semiconductor, the 200-day moving average sits at $184.9, according to Benzinga Pro, which is above the current price of $146.8. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

Price Action: TSM stock is down 6.47% at $137.30 premarket at the last check on Monday.

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