Emerging South Korean Market Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 45 minutes ago
0mins
Should l Buy TSM?
Source: CNBC
- Strong Market Performance: The South Korean Kospi index has reached an all-time high, posting its strongest weekly gain since 2008 last week, indicating the potential for emerging markets to outperform the U.S. and attracting more investor attention.
- Surge in Semiconductor Shipments: South Korean semiconductor shipments surged nearly 150% year-over-year in the first ten days of May, driven by AI server demand, highlighting the country's critical role in the global tech supply chain.
- ETF Investment Opportunities: The newly launched Roundhill Memory ETF (DRAM) has attracted $5 billion to $6 billion in assets under management within 40 days, reflecting strong market interest in South Korean semiconductor firms, particularly Samsung and SK Hynix.
- Investment Strategy Adjustments: Given that the Kospi index has risen approximately 95% this year, investors should approach with caution, recommending a gradual position build-up at price pullbacks to $47-$45 to mitigate risk while capturing potential gains.
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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: 404.540
Low
63.24
Averages
313.46
High
390.00
Current: 404.540
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.
- Strong Market Performance: The South Korean Kospi index has reached an all-time high, posting its strongest weekly gain since 2008 last week, indicating the potential for emerging markets to outperform the U.S. and attracting more investor attention.
- Surge in Semiconductor Shipments: South Korean semiconductor shipments surged nearly 150% year-over-year in the first ten days of May, driven by AI server demand, highlighting the country's critical role in the global tech supply chain.
- ETF Investment Opportunities: The newly launched Roundhill Memory ETF (DRAM) has attracted $5 billion to $6 billion in assets under management within 40 days, reflecting strong market interest in South Korean semiconductor firms, particularly Samsung and SK Hynix.
- Investment Strategy Adjustments: Given that the Kospi index has risen approximately 95% this year, investors should approach with caution, recommending a gradual position build-up at price pullbacks to $47-$45 to mitigate risk while capturing potential gains.
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- New Stock Additions: First Eagle Investment added a total of 37 stocks in Q1 2026, with Automatic Data Processing Inc (ADP) being the largest addition at 2,849,784 shares valued at $579.02 million, representing 0.98% of the portfolio, indicating strong confidence in its long-term value.
- Key Position Increases: The firm increased stakes in 230 stocks, notably adding 3,269,940 shares of Workday Inc (WDAY), a 75.37% increase, bringing total holdings to 7,608,713 shares, reflecting a strong outlook on its growth potential.
- Complete Exits: First Eagle completely exited 39 holdings in Q1, including Webster Financial Corp (WBS), selling all 227,302 shares, resulting in a -0.03% impact on the portfolio, indicating a reassessment of the stock's prospects.
- Significant Reductions: The firm reduced positions in 125 stocks, notably cutting Taiwan Semiconductor Manufacturing Co Ltd (TSM) by 2,036,189 shares, a 34.29% decrease, impacting the portfolio by -1.09%, demonstrating a cautious stance amid market volatility.
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- Capital Increase Plan: TSMC's board has approved a capital increase of up to $20 billion for its Arizona subsidiary, aimed at supporting the construction of a semiconductor manufacturing site in Phoenix, thereby reinforcing its leadership position in the global semiconductor market.
- Historic Investment: The total investment for this project has reached $165 billion, making it the largest foreign direct investment greenfield project in U.S. history, showcasing TSMC's long-term commitment to the U.S. market and its significance in the global supply chain.
- Production Technology Goals: The facility is expected to commence volume production of Nvidia's Blackwell GPUs by October 2025, with plans to achieve volume production on its N3 process by the second half of 2027, further driving advancements in AI technology.
- Dividend Distribution: TSMC also approved a cash dividend of $0.22 per share for the first quarter of 2026, scheduled for payment on October 8, 2026, reflecting the company's balanced strategy between ongoing investments and shareholder returns.
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- Market Concentration Risk: TSMC's market cap of approximately NT$58 trillion accounts for over 40% of Taiwan's weighted index, indicating a high dependency on a single company that could distort both the economy and the stock market in the long term.
- AI-Driven Earnings Growth: The South Korean stock market has surged over 80% this year, while Taiwan's index has also reached new highs, primarily driven by demand for AI-related semiconductors; however, this concentration may increase market volatility.
- Energy Price Impact: As large energy importers, Taiwan and South Korea face risks from rising oil prices due to Middle Eastern tensions, which could weaken their purchasing power and international competitiveness, even as AI demand boosts exports.
- Investor Sentiment Warning: Analysts warn that the market's overreliance on the AI theme could lead investors to inadvertently increase risk globally, especially as both U.S. and Asian markets are dominated by semiconductor giants.
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- Significant Stock Recovery: Intel's stock has surged over 240% since its removal from the Dow, with a remarkable 377% increase since November 2024, now boasting a market cap exceeding $640 billion, making it the 15th largest component in the S&P 500, indicating a strong market rebound potential.
- Market Share Recovery: Through cost-cutting, restructuring, and new management, Intel has achieved growth in its data center and AI segments, particularly driven by increased demand for central processing units (CPUs), highlighting its increasingly vital role in the AI ecosystem.
- Upgraded Earnings Forecast: Analysts now project Intel's earnings per share to reach $1.53 in fiscal 2027, representing a 40.4% increase from 2026's average estimates, providing a clear runway for high-margin growth, although its valuation has significantly risen with a forward P/E ratio of 115.
- Intensifying Industry Competition: Despite Intel's strong recovery momentum, Nvidia's market cap remains eight times larger than Intel's, and its greater influence in the Dow underscores the need for Intel to continue enhancing its competitiveness to potentially reclaim a spot in the index.
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- Taiwan Arms Sales Controversy: Trump stated he would address U.S. arms sales to Taiwan at the upcoming Beijing summit, a move that could escalate tensions between the U.S. and China, especially given China's accusations of violating the 'one-China principle'.
- Taiwan's Special Defense Budget: Taiwanese lawmakers approved a $25 billion special defense budget, significantly lower than the $40 billion requested by the government, indicating a funding shortfall that may undermine Taiwan's defense capabilities against increasing Chinese military threats.
- Focus on Jimmy Lai's Case: Trump reiterated his call for the release of Hong Kong media tycoon Jimmy Lai, who was sentenced to 20 years for colluding with foreign forces, a stance likely to provoke strong opposition from Beijing and further complicate U.S.-China relations.
- Risks in U.S.-China Relations: Experts warn that any perceived softening of Trump's stance on Taiwan during the summit could be interpreted as a concession to China, potentially emboldening Beijing to take more aggressive actions that threaten Taiwan's autonomy.
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