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.



<h2>Analyst Highlights TSMC's Execution Edge</h2>



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.



<h2>AI Demand Powers Revenue Strength</h2>



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). 



<h2>Big Tech Spending Adds Tailwinds</h2>



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.



Photo: Shutterstock

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Taiwan Semiconductor (TSM) is trading near its 52-week high, driven by a 37% surge in January revenue and increased AI demand from Big Tech, which plans to invest over $600 billion in AI infrastructure. Analyst Gil Luria from DA Davidson initiated coverage with a Buy rating and a $450 price target, highlighting TSMC's operational efficiency and strong gross margins. The company's revenue growth outpaces expectations, and with major players like Google and Amazon ramping up capital expenditures, the semiconductor sector is poised for significant growth, potentially reaching $1 trillion in annual revenue.

- Taiwan Semiconductor Manufacturing Company (TSMC) traded near its 52-week high, driven by demand from the AI sector.  
- Analyst Gil Luria initiated coverage with a Buy rating and a $450 price target, highlighting TSMC's strong execution and 36.8% year-over-year revenue growth in January.  
- Increased capital expenditures from major tech companies like Google and Amazon are expected to further bolster the semiconductor industry, with projections suggesting the sector could reach $1 trillion in annual revenue.

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Taiwan Semiconductor Trades Near 52-Week High After AI Demand, Big Tech Spending Lift Shares