TSMC upgraded to Strong-Buy on strong Jan 2026 sales, high margins, and AI demand, despite some near-term cloud spending concerns.

Taiwan Semiconductor Manufacturing (TSM) received a Strong-Buy rating upgrade from DA Davidson, citing strong January 2026 revenue of NT$401.26 billion—up 19.8% month-over-month and 36.8% year-over-year—along with a cash dividend and solid financials, including a 45.13% net margin and $1.90 trillion market cap. The stock traded near its 12-month high of $380.00, supported by robust AI and data center demand, though some caution remains over potential near-term softening in cloud providers’ AI spending. Analysts project $9.20 EPS for the year, and institutional ownership stands at 16.51%.