TSMC Slips But Surges in Trading Volume Ranks 27th Amid Liquidity-Driven Momentum

On July 31, 2025, TSMC (TSM) closed with a 0.53% decline despite a surge in trading activity. The stock recorded a daily trading volume of $3.27 billion, a 97.11% increase from the previous day, ranking 27th among the most actively traded stocks. The volume spike reflected heightened investor engagement amid ongoing discussions about the company’s production capacity and client demand dynamics.

Recent market activity highlighted TSMC’s position as a liquidity magnet in high-volume trading environments. Analysts noted that short-term momentum strategies focusing on liquidity concentration have shown strong performance in 2025. A strategy of purchasing the top 500 stocks by daily trading volume and holding for one day yielded a 166.71% return since 2022, significantly outperforming the benchmark’s 29.18% return. This excess return of 137.53% underscores the role of liquidity-driven momentum in shaping near-term price movements.

Experts caution that such strategies remain sensitive to evolving market structures. While TSMC’s recent volume surge aligns with broader trends of liquidity clustering, sustained performance depends on maintaining high trading interest and favorable macroeconomic conditions. The company’s ability to manage production bottlenecks and client expectations will likely remain a key focus for investors in the coming months.