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Microsoft, TSMC and AMD graded on AI buildout assumptions
The analysis flags Microsoft’s Azure hitting $100 billion in annual revenue, while TSMC’s net income rose 77.4% in Q2 FY26.
A market piece evaluating the AI buildout’s main beneficiaries named Microsoft and Taiwan Semiconductor Manufacturing as buys and AMD as a hold, based on how investors are pricing each company’s role in the AI stack.
For Microsoft, the article says Q4 FY26 revenue rose to $90.01 billion, up 17.8%, with Azure growing 43% and clearing $100 billion in annual revenue for the first time. It also points to commercial RPO of $678 billion, up 84%, as a signal of contracted future revenue, and cites a $502.03 share price with a consensus analyst target of $563.84 across 57 analysts.
For TSMC, the article cites Q2 FY26 revenue of $40.20 billion, up 36%, gross margin expanding to 67.7%, and net income rising 77.4%. It adds that advanced nodes (7nm and below) now account for 77% of wafer revenue, 2nm contributed 3% commercially, and management raised full-year growth guidance to slightly above 40% in USD.
The piece also notes AMD’s trailing P/E of 124 after a 119% year-to-date rally, characterizing the stock as having already moved ahead of near-term execution, and lists AMD at $467.42 as the hold relative to Microsoft and TSMC. It frames the different valuation levels as reflecting differing assumptions about how the AI buildout resolves.