As of last Friday's close, Taiwan Semiconductor Manufacturing Co. (TSM, Financial) saw its U.S.-listed shares trading nearly 25% higher than its Taipei-listed stock, indicating strong global investor interest in stocks benefiting from the AI boom. TSMC's American Depositary Receipts (ADR) have historically traded at a premium over its Taipei shares due to easier access for foreign investors and inclusion in popular indices.
Data shows that the 24.6% premium as of last Friday was the highest since October 17, significantly above the quarterly average of 19%. On Friday, TSMC's Taipei shares dropped about 3.3%, while its U.S. stock rose approximately 1.3% as market sentiment improved, boosting semiconductor indices.
On Monday, TSMC's local stock rose 4.4%, reducing the ADR premium to below 20% before U.S. markets opened.
