TSM
Another analyst, same storyline
Taiwan Semiconductor Manufacturing is having one of those weeks where the numbers are loud enough to make the analyst notes feel like encore performances. DA Davidson reiterated a Buy rating on TSMC and kept its price target pinned at $450, basically saying, “Yep, the AI chip train is still on schedule.”
Why they’re still so bullish
The call comes right after TSMC’s first-quarter 2026 earnings, which beat expectations on both revenue and earnings. That’s the kind of report that turns skeptics into polite nod-alongs, especially when the company is still seeing monster demand for leading-edge chips.
A few details from the quarter help explain the confidence:
- Revenue grew 30.7% over the last twelve months
- Gross margin stayed hefty at 61.9%
- Advanced technologies made up 74% of wafer revenue
- Capex is trending toward the top end of TSMC’s $52 billion to $56 billion range
The real story: spend now, win later
That capex guide is the part investors should really watch. TSMC is basically saying it needs to keep pouring concrete on the factory equivalent of the Death Star because demand for advanced process tech is still running hot. In other words: the company isn’t acting like it’s done winning.
Big picture
For investors, the rating doesn’t change the plot so much as it confirms it: TSMC remains the toll booth for the AI chip highway. If demand stays this strong, the market may keep treating every analyst upgrade like a nice little validation stamp rather than a surprise.