Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) is seeing its market momentum accelerate as the global artificial intelligence (AI) boom drives unprecedented demand for advanced silicon.

AI Infrastructure Driving Record Growth

The company's momentum score—a percentile-ranked metric measuring price strength and volatility—surged week-on-week from 89.27 to 92.92, placing the foundry in the top 10% of all stocks tracked by Benzinga Edge.

The momentum spike follows a historic January for the Taiwanese economy, where exports surged 70%—the fastest pace in 16 years—fueled almost entirely by AI hardware.

As the primary manufacturer for Nvidia Corp. (NASDAQ:NVDA) and Apple Inc. (NASDAQ:AAPL), TSM reported a 37% year-over-year revenue jump in January alone.

Analysts note that TSM's ability to deliver complex architectural shifts on schedule has maintained its dominant 60% gross margin.

Bullish Outlook From Wall Street

Wall Street is responding to this fever-pitch demand with renewed optimism. DA Davidson recently initiated coverage on TSM with a Buy rating and a $450 price target, suggesting significant upside from current levels.

Currently trading near its 52-week high of $380, TSM continues to flash “green” across short, medium, and long-term price trends as per Benzinga’s Edge Stock Ranking.

Top-Tier Quality Amid ‘Big Tech’ Spending

Beyond momentum, TSM maintains an elite quality score of 97.04, reflecting superior operational efficiency and financial health.

This fundamental strength is being reinforced by massive capital expenditure from hyperscalers like Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), Amazon.com Inc. (NASDAQ:AMZN), and Meta Platforms Inc. (NASDAQ:META).

Total Big Tech AI spending is projected to reach between $550 billion and $600 billion in 2026, creating a sustainable tailwind for TSM’s high-end nodes.

TSM Outperforms In 2026

Shares of TSM have risen by 14.63% year-to-date, while the Nasdaq 100 was down 1.88% in the same period.

The stock was up 51.76% over the last six months and 80.70% over the year. On Friday, the stock closed 0.47% lower at $366.36 per share.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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