TSMC Ranks 31st in Trading Activity as Shares Dip 0.47% Amid Record AI-Driven Growth

On August 6, 2025, TSMC (TSM) closed with a 0.47% decline, trading at a volume of $2.02 billion, a 27.07% drop from the previous day, ranking 31st in market activity. The stock has gained 17.7% year to date, outperforming broader tech sector indices despite macroeconomic and geopolitical uncertainties.

TSMC’s growth trajectory is anchored in its leadership in advanced semiconductor manufacturing, with 3nm production underway and 2nm development progressing. The company is a key player in the AI-driven chip demand surge, securing roles in producing accelerators for major clients. AI-related revenues tripled in 2024, contributing a mid-teen percentage to total sales, and TSMC anticipates another doubling in 2025, projecting a 40% compound annual growth rate over five years. This positions the firm as a central enabler of AI advancements.

Recent financial results underscore TSMC’s resilience, with Q2 2025 revenues rising 44% year-over-year to $30.07 billion and EPS jumping 61% to $2.47. The growth was fueled by strong demand for 3nm and 5nm chips, which now account for 58% of wafer sales. Margins improved to 58.6%, reflecting operational efficiency. The company raised full-year 2025 revenue guidance to 30% growth, with Q3 expected to see $31.8–$33 billion in revenue.

Despite its strengths, TSMC faces near-term challenges. Rising energy costs in Taiwan, following a 25% electricity hike in 2024, and slowing growth in PC and smartphone markets could temper near-term gains. Global expansion into Arizona, Japan, and Germany adds to costs, with new facilities projected to reduce gross margins by 2–3 percentage points annually over the next five years. Heightened U.S.-China tensions also pose risks to supply chains and regulatory stability.

A strategy of purchasing the top 500 high-volume stocks and holding for one day generated a 166.71% return from 2022 to the present, significantly outperforming the benchmark’s 29.18% by 137.53 percentage points. This highlights the short-term liquidity-driven momentum in high-volume equities, particularly in volatile markets.