Analysts See Strong Potential for Ozak AI in High-Level Listing Amid AI Industry Growth

Taiwan Semiconductor Manufacturing Company (TSMC) posted a record 35% year-over-year increase in profit for its fourth quarter of 2025, surpassing Wall Street's estimates. This strong performance was driven largely by its high-performance computing division, which includes AI and 5G applications. TSMC raised its capital expenditures forecast for 2026 to between $52 billion and $56 billion, up from $40.9 billion in 2025.

C3.ai, a key player in the AI industry, reported Q2 2026 results with revenue of $75.1M, exceeding the forecasted $74.9M. The company's subscription revenue grew 16.5% quarter-over-quarter, with Microsoft and AWS accounting for a significant portion of its bookings. Despite a non-GAAP operating loss of $42.2M, C3.ai maintained a strong cash position of $675M.

Analysts from JPMorgan and Barclays reiterated their outperform and overweight ratings on TSMC, citing the company's strong gross margins and confidence in long-term AI compute demand. JPMorgan analyst Gokul Hariharan noted that TSMC's increased capital expenditure plans reflect the industry's confidence in sustained AI demand.

Why Did This Happen?

The AI sector is experiencing robust demand driven by both training and inference workloads, according to Wedbush Securities analyst Matt Bryson. TSMC's increased capex and positive guidance reflect this trend. Bryson noted that AI infrastructure is transitioning from heavy training cycles to more widespread inference deployment, which is supporting the chip sector.

The strong demand for AI infrastructure is also evident in C3.ai's performance. The company's CEO highlighted that enterprise AI is moving from experimentation to full-scale deployment. This shift has driven revenue growth and attracted significant investment in AI partnerships and platforms.

How Did Markets React?

Following TSMC's Q4 results, the company's stock price rose by more than 5%. This rally was mirrored by other AI-related stocks, with Nvidia and Broadcom rising 3% and more than 1%, respectively. The VanEck Semiconductor ETF (SMH) also hit a fresh 52-week high.

C3.ai's stock price rose 4.42% following its Q2 earnings report, reaching $14.37. This increase was attributed to the company's improved revenue performance and guidance for the remainder of 2026. Analysts from Wells Fargo and JPMorgan highlighted the sector's resilience and potential for continued growth.

What Are Analysts Watching Next?

Wells Fargo analyst Aaron Rakers raised his overweight rating on Broadcom and identified AMD as a top pick for 2026. Rakers emphasized the strength of AI infrastructure demand and the transition to inference-driven growth as key factors supporting the sector.

C3.ai has set Q3 revenue guidance at $72–80M, with an overall 2026 revenue forecast of $289.5M–$309.5M. Analysts are watching closely whether the company can maintain this momentum amid competitive pressures and economic uncertainties. C3.ai's partnership ecosystem, particularly with Microsoft and AWS, is a focal point for its future growth.

TSMC's updated capex plans and AI acceleration forecasts are also drawing attention. Bank of America and UBS have maintained their buy ratings on the company, citing long-term confidence in the AI-driven semiconductor market. The generative AI media software market is projected to grow from $8.61 billion in 2025 to $27.99 billion by 2029, at a compound annual growth rate of 34.3%.

TSMC's ability to meet rising customer demand for leading-edge chips is critical for sustaining its growth trajectory. Analysts are also evaluating whether the AI industry can maintain its momentum without overcapacity concerns. TSMC's management has addressed these concerns by emphasizing strong customer demand and confidence in AI infrastructure deployment.