Goldman Sachs's Bold Move: Downgrades Taiwan's Stocks Amidst Global Trade Tensions

Goldman Sachs Adjusts Taiwan Stock Rating to Neutral, Shifting Investment Focus

In the wake of escalating global trade tensions following the announcement of reciprocal tariffs by former U.S. President Trump, investment firm Goldman Sachs, known for its accurate 2024 forecasts on the Taiwan stock market, has taken a significant step. They've downgraded the overall rating of Taiwan's stocks to "Neutral".

This strategic shift also involves a significant adjustment to their preferred investment list. Notable changes include the addition of MediaTek (聯發科) and the removal of Delta Electronics (台達電) from their priority buy recommendations.

Goldman Sachs's decision to lower the Taiwan stock rating from "Outperform" to "Neutral" is primarily attributed to concerns regarding the impact of potential tariffs on Taiwan's exports and overall economic performance. The imposition of 32% reciprocal tariffs is seen as detrimental, particularly as the rates surpass those imposed on key technological competitors like Japan and South Korea. This disparity is projected to increase operational costs, potentially intensifying competition within the semiconductor, memory, and display sectors.