Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM) traded near its 52-week high on Friday as the AI boom continued to drive strong momentum across chipmakers.
Analyst Highlights TSMC’s Execution Edge
DA Davidson analyst Gil Luria initiated coverage on Taiwan Semiconductor with a Buy rating and a $450 price forecast.
Luria said Taiwan Semiconductor differentiates itself by repeatedly turning complex architectural shifts into reliable, cost-efficient manufacturing platforms delivered on schedule.
The company’s nearly 60% gross margin underscores that operational discipline, the analyst noted.
AI Demand Powers Revenue Strength
Taiwan Semiconductor’s January revenue rose 36.8% year-over-year to 401.3 billion New Taiwan dollars ($12.7 billion), topping the 30% growth the company expects for the full year.
The company is a critical supplier to Nvidia Corp (NASDAQ:NVDA) and Apple Inc (NASDAQ:AAPL).
Big Tech Spending Adds Tailwinds
Semiconductor stocks saw gains as investors reacted to fresh signs of accelerating AI-driven spending.
Alphabet Inc‘s (NASDAQ:GOOGL) Google and Amazon.com Inc (NASDAQ:AMZN) raised their 2026 capital expenditure forecasts, boosting suppliers such as Nvidia and Taiwan Semiconductor that provide key AI hardware, including custom TPU chips and GPUs.
Google now expects $175 billion–$185 billion in capex, while Amazon outlined a $200 billion plan.
Wedbush analyst Dan Ives projects Big Tech capex climbing to $550 billion–$600 billion in 2026, up from roughly $380 billion in 2025.
He sees the semiconductor sector nearing $1 trillion in annual revenue as AI and data center demand surge.
TSM Price Action: Taiwan Semiconductor shares were up 0.54% at $370.07 at the time of publication on Friday, according to Benzinga Pro data.
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