Reported 10 months ago
As the AI boom continues, global investors are actively pursuing AI concept stocks, leading to a surge in the TSMC ADR share price. The premium of TSMC ADR over TSMC's stock has reached a new high since 2009, posing risks to investors practicing the long-preferred arbitrage strategy of buying TSMC stock and shorting TSMC ADR. Statistics show that as of June 14, the premium of TSMC ADR over TSMC stock has reached 21%, far exceeding the 5-year average of around 8%, marking the highest level since 2009. Analysts predict that the premium may continue to expand, potentially leading to forced liquidation for arbitrage investors. TSMC, with its advanced technology and reasonable valuation, has become a sought-after target for investors bullish on the prospects of AI. TSMC ADR has surged 66% this year by June 14's closing, exceeding the 55% increase in TSMC's stock during the same period.
Source: YAHOO