TSMC’s 1.61% Rally Driven by AI Demand, Hits 42nd in Market Activity as Analysts Raise Targets

TSMC (TSM) rose 1.61% on August 4, 2025, with a trading volume of $1.53 billion, a 51.96% decline from the prior day, ranking 42nd in market activity. The stock’s performance was driven by strong demand for AI and high-performance computing, as highlighted by recent earnings reports surpassing analyst expectations.

Analyst sentiment remains positive despite a -1.8% fair value upside. TSMC’s critical role in manufacturing advanced chips for global AI applications positions it as a key enabler of the sector. Barclays raised its price target to $275, while Goldman Sachs, Citi, and BofA Securities also increased targets following Q2 results. TSMC’s 75% revenue share from leading-edge nodes (N7 and below) underscores its technological leadership and demand resilience.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day returned 166.71% from 2022 to the present, outperforming the benchmark by 137.53%. This highlights liquidity concentration’s impact on short-term performance, particularly in volatile markets, where high-volume stocks experience amplified price movements due to institutional and algorithmic trading activity.