TSMC Triggers Death Cross As Trump Tariff Threats Add To Investor Concerns

Core Viewpoint - Taiwan Semiconductor Manufacturing Company (TSMC) is facing significant technical and political challenges, leading to a bearish outlook for its stock performance [1][2][3]. Technical Indicators - TSMC shares have declined 25% year-to-date and 11% in the past month, falling below key moving averages, indicating a strong bearish trend [1]. - The Moving Average Convergence Divergence (MACD) is at a negative 9.07, and the Relative Strength Index (RSI) is at 37.85, suggesting the stock is nearing oversold conditions [2]. Political Environment - President Donald Trump has threatened TSMC with a 100% tax if it does not manufacture chips in the U.S., adding pressure on the company [2]. - TSMC has committed over $100 billion to build five factories in the U.S., in addition to a previous pledge of $65 billion, but market reactions remain lukewarm [3]. Investment Alternatives - Investors looking for safer exposure to the semiconductor sector may consider diversified ETFs such as SPDR S&P 500 ETF Trust (SPY), iShares Semiconductor ETF (SOXX), or VanEck Semiconductor ETF (SMH) to mitigate risks associated with individual stocks [4]. - Given the technical pressures and political scrutiny, TSMC shares are expected to face a challenging path, prompting investors to wait for signs of stability before re-engaging [4].