Amazon and TSMC: Over $125 Billion AI Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 21 2026
0mins
Source: Fool
- Rising Market Valuations: The S&P 500 hits new highs with a CAPE ratio nearing 40, the highest in over a decade, indicating rising market valuations and prompting investors to carefully seek out value stocks.
- Amazon's AI Investment: Amazon plans to invest over $125 billion in AI projects in 2025 and 2026, with the CEO emphasizing a shift from traditional IT spending to cloud computing, which is expected to drive long-term growth for the company.
- TSMC's Market Position: Taiwan Semiconductor Manufacturing is responsible for 85% of global start-up semiconductor prototypes, boasting a 54% operating margin in Q4 2025 and a 21% year-over-year sales increase, reflecting strong market demand and profitability.
- Investment Value Emerges: Despite minimal stock price movement over the past year, Amazon trades at less than 34 times earnings and TSMC at only 32 times sales, presenting attractive value opportunities for growth investors.
Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMZN is 294.69 USD with a low forecast of 250.00 USD and a high forecast of 340.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
47 Analyst Rating
46 Buy
1 Hold
0 Sell
Strong Buy
Current: 244.680
Low
250.00
Averages
294.69
High
340.00
Current: 244.680
Low
250.00
Averages
294.69
High
340.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
