Tech stocks are back in focus as earnings season approaches, with artificial intelligence (AI) driving growth across the sector. Investors are closely watching companies with direct exposure to AI infrastructure, cloud computing, and high-performance chips, as these trends are proving to be more durable than many expected.
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That sets the stage for a potentially strong earnings season for industry leaders like Taiwan Semiconductor (NYSE: TSM), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN). Each company enters its report with improving momentum and clear ties to AI spending.
With expectations rising and demand signals strengthening, these tech giants may not only meet estimates but exceed them, pushing their stocks to new highs.
AI Demand Fuels Taiwan Semiconductor’s Breakout Quarter
Since the start of the year, Taiwan Semiconductor has been one of the most explosive tech stocks on the market, running from about $311 to a recent high of $370. All thanks to substantial demand for artificial intelligence (AI) chips and high-performance computing (HPC) from tech heavyweights like NVIDIA (NASDAQ: NVDA), Broadcom (NASDAQ: AVGO), and Advanced Micro Devices (NASDAQ: AMD).
When Taiwan Semiconductor releases first-quarter earnings on April 16, we expect it to rally significantly, just as it did after its February earnings. After posting a strong quarter, TSM rallied from about $329 to $389 over a few weeks. This time around, the Street is looking for substantial earnings following the company’s preliminary report of record-breaking quarterly revenue, which is already well above market expectations.
In fact, for the first quarter, the company already reported preliminary revenue of $35.71 billion, marking a strong year-over-year increase of 35% and landing at the high end of its previously guided range of $34.6 billion to $35.8 billion. Most notably, March alone delivered a 45% year-over-year increase in revenue, signaling accelerating demand.
All of which highlights the strength of AI-driven demand.
For the full year, Taiwan Semiconductor remains highly optimistic as it expects the foundry 2.0 industry to grow 14% year over year. The company’s revenue could increase by 30% for the year to $158 billion, which aligns with consensus estimates.
Microsoft’s Azure Growth Could Reignite Big Tech Momentum
Microsoft Corporation will post earnings on April 29 after the markets close. Just weeks ago, Microsoft traded at just 22x forward P/E, a level last seen in 2016. It traded at $368 and was one of the hardest-hit tech stocks on the market. Today, as the company nears earnings, it’s up to $384 and climbing. When the company posts earnings later this month, investors will be paying close attention to its cloud platform, Microsoft Azure.
As more businesses shift their operations to the cloud, Azure has become one of the leading platforms powering that transition. Investors will be paying close attention to Azure for evidence that heavier AI spending is resulting in stronger revenue growth.
Analysts remain bullish. For example, Goldman Sachs now has a buy rating on the tech giant with a $600 price target. According to the firm, Microsoft’s growth story remains intact, and the risk is already priced in. The firm also says Microsoft is the best compounder across AI products because it earns across AI compute, platforms, and applications.
Amazon’s AI Expansion Is Quietly Becoming a Profit Engine
Amazon is expected to post first-quarter earnings on April 30. While its stock is relatively flat year to date, it is regaining momentum as earnings approach. Fueling a good deal of recent upside is a combination of strong AI-driven growth in its cloud business and a strong shareholder letter from CEO Andy Jassy.
With regard to the company’s AI business, the CEO noted, “I’ve followed the public debate on whether this technology is over-hyped, whether we’re in ‘a bubble,’ and if the margins and ROIC will be appealing. My strong conviction, at least for Amazon, is that the answers are no, no, and yes,” as quoted in a shareholder letter.
He added, “Three years after AWS launched commercially, it had a $58 million revenue run rate. Three years into this AI wave, AWS’s AI revenue run rate is over $15 billion in Q1 2026 (nearly 260 times larger than AWS at that same point)—and ascending rapidly.”
Now that we are nearing Amazon’s earnings later this month, we expect to see even more positive news, especially as AI demand shows no signs of cooling.
Earnings Season Could Push These Tech Stocks Higher
In short, Taiwan Semiconductor, Microsoft, and Amazon are all entering their upcoming earnings reports with strong momentum driven largely by sustained AI demand. Taiwan Semiconductor has record-breaking revenue and accelerating growth.
Microsoft’s expanding Azure platform and diversified AI ecosystem are sure to continue to impress to the upside. And Amazon’s rapidly scaling AI business within AWS highlights its ability to capitalize on one of the most transformative trends in technology.
As these companies report in the coming weeks, each could see higher highs.
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