Core Insights - TSMC's net profit increased nearly 40% in the last quarter, driven by the rise in artificial intelligence usage, reaching a record 452.3 billion new Taiwan dollars ($15 billion) [1] - The company's revenue rose 30% year-on-year in the last quarter, exceeding analysts' expectations [1] Company Developments - TSMC is constructing chip fabrication plants in the U.S. and Japan to mitigate risks from China-U.S. trade tensions [2] - The company is a key supplier for major firms like Apple and Nvidia, indicating strong demand for its products [2] - TSMC has committed $100 billion in U.S. investments, including new factories in Arizona, in addition to a previous pledge of $65 billion [3] Market Outlook - Analysts from Morningstar noted that demand for TSMC's products remains strong, suggesting resilience against potential tariffs on shipments to U.S. customers [2] - U.S. Commerce Secretary proposed a 50-50 division of chip production between Taiwan and the U.S., which Taiwan has rejected [2]

Core Viewpoint - Morgan Stanley has indicated that unresolved trade tensions could lead to a more significant decline in stock prices than previously anticipated [1] Group 1 - The firm warns that the potential for escalating trade conflicts poses a risk to market stability [1] - Analysts suggest that the impact of these tensions could exceed current market expectations [1] - The warning highlights the importance of monitoring trade relations for investors [1]

Group 1 - Investors are optimistic about a potential easing of China-U.S. trade tensions following President Trump's statement regarding a substantial drop in the 145% tariff on Chinese imports [1] - Treasury Secretary Scott Bessent indicated that there will be a de-escalation in trade issues and highlighted the opportunity for a significant deal between the two countries [1] - U.S.-listed shares of Alibaba Group Holding Ltd (NYSE:BABA) rose by 3.6% to $120.08, while JD.com Inc (NASDAQ:JD) increased by 1.2% to $34.06 in response to the news [1] Group 2 - Alibaba is on track for its fourth consecutive daily gain, with a year-to-date increase of 41.9% and a potential close above the 20-day moving average for the first time since March [2] - JD.com is attempting to end a five-day losing streak, maintaining a year-over-year increase of 23.9% despite a slight deficit for 2025 [3] - The $32 level has acted as a support floor for JD.com, containing two major pullbacks this month and previously serving as support in January and November [3]