TSMC Rises 1.06% on $1.67B Volume Claims 35th Spot in Market Activity Amid AI and Semiconductor Demand Surge

Taiwan Semiconductor Manufacturing Company (TSM) rose 1.06% on August 18, 2025, with a trading volume of $1.67 billion, ranking 35th in market activity. The stock's performance reflects ongoing investor focus on its strategic role in the semiconductor industry.

Bernstein analyst Mark Li reaffirmed an Outperform rating for TSM, citing the company's dominance in semiconductor equipment spending. The firm highlighted TSMC's capital allocation toward infrastructure, packaging, and testing technologies, as well as the rising wafer fabrication costs driven by onshoring trends and technological complexity. Analysts noted that TSMC's capital expenditure strategy contrasts with inflationary pressures in China's semiconductor sector, positioning it as a key player in global chip manufacturing dynamics.

TSMC remains central to the AI and high-performance computing supply chain, with its advanced wafer fabrication processes supporting applications in smartphones, automotive systems, and IoT devices. The company's global operations and R&D investments in color filters and startup collaborations further reinforce its market influence, though analysts caution that alternative AI stocks may offer different risk-return profiles.

A backtest of a strategy buying the top 500 stocks by daily trading volume and holding them for one day generated a total profit of $2,340 from 2022 to the present. This corresponds to a cumulative return of 23.4% relative to the initial investment, indicating moderate gains amid market volatility and a conservative approach.