TSMC's Trading Volume Surges 98.6% to 29.38 Billion, Ranks 22nd in Market Despite Stock Decline

On June 20, 2025, TSMC's trading volume reached 29.38 billion, marking a 98.6% increase from the previous day, ranking 22nd in the day's stock market. TSMC's stock price fell by 1.86%, marking the third consecutive day of decline, with a total decrease of 2.85% over the past three days.

TSMC is a dominant player in the artificial intelligence semiconductor market, manufacturing an estimated 90% of the world's AI semiconductors. This leadership position is a significant factor in the company's market performance.

TSMC's revenue streams are diversified, with 59% of its Q1 2025 revenue coming from AI-driven high-performance computing (HPC). This diversification helps mitigate risks associated with reliance on a single market segment.

SoftBank is collaborating with TSMC and the Trump administration to establish a $1 trillion AI hub in Arizona. This initiative aims to onshore advanced manufacturing, which could further bolster TSMC's market position and technological advancements.

TSMC's CoWoS margins now exceed 60-65%, with packaging volume expected to triple by the end of FY 2025. The increasing contribution of AI and HPC to TSMC's revenue underscores the company's strategic focus on high-growth areas.

Investing in TSMC is seen as a bet on the future of AI, given the company's pivotal role in the semiconductor industry. This investment thesis is supported by the expectation of increased AI spending in the coming years.