Why did TSM stock dip today?

News of China’s drills near Taiwan raised short-term risk, while year-end liquidity stayed light. TSM stock slipped 0.45% to $299.58, with volume below its 12.7 million average. Traders priced a modest disruption premium while awaiting official advisories and whether live-fire activity persists into the first sessions of the new year.

How could China Taiwan military drills affect Japan?

The main channel is logistics. Delays or reroutes in the Taiwan Strait can slow wafer shipments, increase insurance costs, and stretch lead times for Japanese auto, electronics, and equipment makers. Short disruptions may be absorbed. Longer drills or wider advisories could raise buffer inventory needs and pressure production schedules.

Is TSM stock overvalued at a 31x P/E?

A 31.13 P/E looks rich versus cyclicals but aligns with top-tier chip growth and 43% net margins. With ROE at 34% and a 0.80% dividend yield, quality is high. Valuation can compress if geopolitical risk lingers, so many investors scale entries and anchor to moving averages for risk control.

What should Japan investors watch next for TSM?

Track official maritime and air notices, drill timelines, and shipping insurers’ pricing. On the tape, watch the 50‑day average, Bollinger lower band, and volume versus average. Also monitor analyst commentary on orders and any updates from TSMC around capacity or delivery timing that could affect guidance.

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TSM Stock Today: December 31 — China Drills Near Taiwan Raise Supply Risk

ByHuzaifa Zahoor December 31, 2025December 31, 2025

TSM stock is in focus for Japan on December 31 as China’s drills around Taiwan raise a new supply premium into year-end. We track TSM at $299.58, down 0.45% today, with a $1.55T market cap and a 52-week range of $134.25 to $313.98. Live-fire activity near the Taiwan Strait heightens chip supply chain risk that matters to Japanese manufacturers. We outline price action, valuation, technicals, and what this means for allocation decisions in JPY-based portfolios.