TSMC Surges 4.86% on $4.31 Billion Volume Ranked 16th in Market Activity as AI Demand Drives Growth

On August 7, 2025, TSMC (NYSE: TSM) surged 4.86% with a trading volume of $4.31 billion, a 97.08% increase from the prior day, ranking 16th in market activity. The move reflected renewed investor confidence in the semiconductor giant amid evolving market dynamics.

TSMC remains a cornerstone of the AI-driven tech sector, leveraging its dominant position in global chip manufacturing. Analysts highlight its 62% share of the foundry market, a critical enabler for AI chipmakers like Nvidia and AMD. Recent projections indicate the GPU market could expand from $82.7 billion in 2025 to $352.5 billion by 2030, positioning TSMC to benefit from sustained demand. The company’s Q2 revenue reached $30.07 billion, a 44.4% year-over-year rise, with Q3 guidance suggesting further growth to $31.8–$33 billion.

Geopolitical risks, including U.S. tariffs and China-related tensions, remain a concern. However, TSMC’s strategic investments, such as a $165 billion Arizona facility expansion, aim to mitigate exposure to trade uncertainties. Analysts project annual earnings growth of over 21% for the next three to five years, driven by its pivotal role in AI infrastructure and data center expansion.

The strategy of purchasing the top 500 stocks by daily trading volume and holding for one day delivered a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. This underscores liquidity concentration in high-volume stocks as a key driver of short-term performance, particularly in volatile markets where macroeconomic shifts create trading opportunities. Investors should weigh risks and market context before adopting such strategies.