Asia stocks rise on US-China trade deal, Indo-Pak deescalation By Investing.com
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 12 2025
0mins
Source: Investing.com
Asian Market Reactions: Asian stocks rose, led by China, following a trade deal announcement between Beijing and Washington, while India's Nifty index surged nearly 3% due to a U.S.-brokered ceasefire in Kashmir. However, gains were tempered by declines in pharmaceutical stocks after President Trump announced plans to reduce U.S. drug prices.
Trade Deal Implications: The trade agreement between the U.S. and China marks a significant de-escalation in their ongoing trade war, although details remain unclear, keeping market gains cautious as investors await further announcements.
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Analyst Views on TSM
Wall Street analysts forecast TSM stock price to fall
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 444.230
Low
63.24
Averages
313.46
High
390.00
Current: 444.230
Low
63.24
Averages
313.46
High
390.00
About TSM
Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based integrated circuit foundry service provider. The Company is primarily engaged in integrated circuit manufacturing services. It offers advanced process technologies, specialised process solutions, advanced photomask and silicon stacking, and packaging-related technologies, while supporting a comprehensive design ecosystem. The Company's products serve diverse electronic sectors including artificial intelligence, high-performance computing, wired and wireless communications, automotive and industrial equipment, personal computing, information applications, consumer electronics, smart internet of things, and wearable devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Sector Allocation Comparison: IEFA's top sector allocations are financials (23%), industrials (19%), and technology (12%), whereas VXUS has higher allocations in financials (22%), technology (21%), and industrials (15%), particularly highlighting the significant influence of technology in emerging markets, reflecting VXUS's investment potential in AI and other emerging sectors.
- Portfolio Selection: IEFA is suitable for investors looking to focus on developed markets, while VXUS offers a superior choice for those seeking comprehensive international stock coverage, especially in the context of today's diversified global economy, making VXUS's diversified strategy more appealing.
- Expense Ratio Advantage: Both ETFs boast expense ratios below 0.1%, providing competitive cost-effectiveness; however, VXUS's diversified portfolio may offer higher long-term return potential, particularly given the growth expectations in emerging markets.
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- Market Coverage Differences: The iShares Core MSCI EAFE ETF focuses solely on developed markets, holding approximately 2,600 stocks with Japan and the UK accounting for nearly 40%, while the Vanguard Total International Stock ETF encompasses both developed and emerging markets with around 8,700 stocks, offering broader global investment opportunities.
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- Investor Confidence Shaken: Despite reporting $13.6 billion in first-quarter revenue, a 7% year-over-year increase, Intel's market valuation has soared to about $638 billion, roughly 12 times its revenue, and the company remains unprofitable, leading to diminished investor confidence in its future profitability.
- Weak External Revenue Growth: Intel's external foundry revenue was only $174 million in the first quarter, highlighting a lack of demand for its manufacturing services, which poses challenges to investor expectations for future growth.
- Upcoming Key Earnings Report: Intel is set to release its second-quarter earnings on July 23, with the market closely watching its revenue guidance and the narrowing of foundry losses to assess future growth potential and the restoration of market confidence.
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- Industry Growth Forecast: According to Gartner, the semiconductor industry's revenue is expected to surge by 64% to $1.32 trillion in 2026, and exceed $1.55 trillion in 2027, which will significantly enhance the profitability of related companies.
- TSMC Market Share Increase: TSMC's foundry market share rose from 68% to 73% in Q1 2023, driven by strong demand for its advanced 5nm, 3nm, and 2nm process nodes, with revenue expected to grow at over 20% going forward.
- ASML Equipment Demand Surge: ASML raised its 2026 revenue guidance to €36 billion to €40 billion, reflecting robust demand for its extreme ultraviolet (EUV) machines, with a forecasted 25% increase in low-NA EUV shipments this year, followed by a 33% jump in 2027.
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See More
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- Industry Impact: Despite SpaceX's success, other giants like Apple, Google, and Amazon are facing rising cost pressures due to memory shortages, which could impact their product margins, leading to investor concerns and stock price volatility.
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- Manufacturing Dominance: TSMC holds a dominant position in the global semiconductor manufacturing sector, leveraging advanced process technologies and large-scale production capabilities to ensure strong customer lock-in with firms like Nvidia and Apple, thereby solidifying its market leadership.
- Customer Lock-In: By establishing close partnerships with key clients, TSMC not only increases customer dependency but also enhances its competitive edge through continuous technological innovation and efficient production capabilities, ensuring long-term revenue stability.
- Geopolitical Importance: TSMC's manufacturing capabilities play a crucial role in the global supply chain, especially in the current geopolitical climate, where its stable production capacity is viewed as an essential component of national security, attracting attention and support from various governments.
- Investment Risk Warning: Despite TSMC's strong market potential, investors must remain vigilant about potential risks, including intensified market competition and uncertainties arising from technological changes, which could impact its future profitability and stock performance.
See More
Comparative Analysis of International Stock ETFs
- Market Coverage Differences: The iShares Core MSCI EAFE ETF (IEFA) focuses solely on developed market stocks outside the U.S. and Canada, tracking around 2,600 stocks, while the Vanguard Total International Stock ETF (VXUS) encompasses both developed and emerging markets with approximately 8,700 stocks, showcasing VXUS's broader global coverage.
- Sector Allocation Comparison: IEFA's top sector allocations are financials (23%), industrials (19%), and technology (12%), whereas VXUS has higher allocations in financials (22%), technology (21%), and industrials (15%), particularly highlighting the significant influence of technology in emerging markets, reflecting VXUS's investment potential in AI and other emerging sectors.
- Portfolio Selection: IEFA is suitable for investors looking to focus on developed markets, while VXUS offers a superior choice for those seeking comprehensive international stock coverage, especially in the context of today's diversified global economy, making VXUS's diversified strategy more appealing.
- Expense Ratio Advantage: Both ETFs boast expense ratios below 0.1%, providing competitive cost-effectiveness; however, VXUS's diversified portfolio may offer higher long-term return potential, particularly given the growth expectations in emerging markets.
See More
Comparison of Core International Stock ETFs
- ETF Fee Comparison: Both the iShares Core MSCI EAFE ETF and the Vanguard Total International Stock ETF feature expense ratios below 0.1%, enabling investors to effectively manage costs when selecting core international equity funds, thereby enhancing long-term investment returns.
- Market Coverage Differences: The iShares Core MSCI EAFE ETF focuses solely on developed markets, holding approximately 2,600 stocks with Japan and the UK accounting for nearly 40%, while the Vanguard Total International Stock ETF encompasses both developed and emerging markets with around 8,700 stocks, offering broader global investment opportunities.
- Sector Allocation Analysis: The iShares Core MSCI EAFE ETF's top sectors include financials (23%), industrials (19%), and technology (12%), whereas the Vanguard Total International Stock ETF has a higher allocation in technology (21%) alongside financials (22%) and industrials (15%), reflecting a greater emphasis on emerging fields like AI.
- Investment Choice Recommendations: For investors seeking comprehensive international stock coverage in a single fund, the Vanguard Total International Stock ETF is the superior choice, while the iShares Core MSCI EAFE ETF is suitable for those focusing exclusively on developed markets, highlighting the applicability of different investment strategies.
See More
Intel's Stock Pullback Raises Market Concerns
- Stock Volatility: Intel's stock surged approximately 270% in the first half of 2026, reaching $139.63, but fell 9% to $127.02 on Wednesday and another 5% to $120.35 on Thursday, indicating widespread selling pressure on chip stocks.
- Investor Confidence Shaken: Despite reporting $13.6 billion in first-quarter revenue, a 7% year-over-year increase, Intel's market valuation has soared to about $638 billion, roughly 12 times its revenue, and the company remains unprofitable, leading to diminished investor confidence in its future profitability.
- Weak External Revenue Growth: Intel's external foundry revenue was only $174 million in the first quarter, highlighting a lack of demand for its manufacturing services, which poses challenges to investor expectations for future growth.
- Upcoming Key Earnings Report: Intel is set to release its second-quarter earnings on July 23, with the market closely watching its revenue guidance and the narrowing of foundry losses to assess future growth potential and the restoration of market confidence.
See More
Semiconductor Industry Fuels AI Growth
- Industry Growth Forecast: According to Gartner, the semiconductor industry's revenue is expected to surge by 64% to $1.32 trillion in 2026, and exceed $1.55 trillion in 2027, which will significantly enhance the profitability of related companies.
- TSMC Market Share Increase: TSMC's foundry market share rose from 68% to 73% in Q1 2023, driven by strong demand for its advanced 5nm, 3nm, and 2nm process nodes, with revenue expected to grow at over 20% going forward.
- ASML Equipment Demand Surge: ASML raised its 2026 revenue guidance to €36 billion to €40 billion, reflecting robust demand for its extreme ultraviolet (EUV) machines, with a forecasted 25% increase in low-NA EUV shipments this year, followed by a 33% jump in 2027.
- Investor Confidence Boost: With strong performances from TSMC and ASML, analysts are optimistic about both companies' future growth potential, as TSMC's stock has soared 111% over the past year and ASML's by 148%, indicating strong market confidence in the semiconductor sector.
See More
SpaceX Joins Elite $2 Trillion Market Cap Club on First Trading Day
- Market Cap Milestone: SpaceX achieved a market capitalization of $2.16 trillion on its first trading day on Nasdaq, joining an elite group of only seven companies globally, reflecting strong market performance and investor confidence.
- Industry Impact: Despite SpaceX's success, other giants like Apple, Google, and Amazon are facing rising cost pressures due to memory shortages, which could impact their product margins, leading to investor concerns and stock price volatility.
- Competitive Analysis: Over the past month, SpaceX's stock surged by 21.5%, while other giants like Nvidia and Alphabet are grappling with market uncertainties due to rising memory costs, highlighting SpaceX's relative advantage in the current market environment.
- Future Outlook: Although SpaceX's valuation is perceived as excessive, analysts believe that all six other companies with market caps over $2 trillion, excluding SpaceX, still possess strong growth prospects and could emerge as long-term winners.
See More
TSMC: The Hidden Power of a Global Semiconductor Giant
- Manufacturing Dominance: TSMC holds a dominant position in the global semiconductor manufacturing sector, leveraging advanced process technologies and large-scale production capabilities to ensure strong customer lock-in with firms like Nvidia and Apple, thereby solidifying its market leadership.
- Customer Lock-In: By establishing close partnerships with key clients, TSMC not only increases customer dependency but also enhances its competitive edge through continuous technological innovation and efficient production capabilities, ensuring long-term revenue stability.
- Geopolitical Importance: TSMC's manufacturing capabilities play a crucial role in the global supply chain, especially in the current geopolitical climate, where its stable production capacity is viewed as an essential component of national security, attracting attention and support from various governments.
- Investment Risk Warning: Despite TSMC's strong market potential, investors must remain vigilant about potential risks, including intensified market competition and uncertainties arising from technological changes, which could impact its future profitability and stock performance.
See More
