TSMC ADR Premium Tops Two-Decade High as Global Buyers Pile In

Group 1 - Global investors are increasing their investments in Taiwan Semiconductor Manufacturing Company (TSMC) ahead of its earnings report, driven by confidence in the company's role as a key beneficiary of the AI spending boom [1][3] - TSMC's American depositary receipts (ADRs) are trading at the highest premium to its Taipei shares since 2002, reflecting growing global investor awareness of TSMC's importance as the main outsourced chip supplier for companies like Nvidia [2][4] - TSMC's ADRs have surged 54% this year, outperforming the 38% gain in its Taiwan listing, indicating strong bullish sentiment among global traders [3] Group 2 - Strong orders from Apple for advanced iPhone chips and foundry services for Nvidia's Blackwell are expected to significantly boost TSMC's revenue in the upcoming quarters [5] - Analysts predict that TSMC will express a bullish outlook on data center AI demand and indicate that demand for its leading-edge wafers will remain tight through 2026 [6] - Options traders are increasingly positioning for further gains, with the cost of bullish contracts on TSMC's ADRs reaching the highest level this year relative to bearish bets [7]