An analyst predicts that Micron Technology and Taiwan Semiconductor Manufacturing stocks will rebound to new all-time highs before the end of 2026, driven by surging AI demand and increased production capacity. Micron is down about 25% from its high, while TSMC is off around 15%, despite strong year-over-year gains of 213% and 36% respectively. The analyst cites bullish signals from AI hyperscalers, with Amazon indicating insufficient compute capacity in 2026, Alphabet planning significantly higher capital expenditures in 2027, and Nvidia expecting AI spending to top $1 trillion next year. TSMC recently announced a $100 billion investment in Arizona facilities, and Micron is building more production lines set to come online in mid-2027. Wall Street analysts project 42% revenue growth for TSMC in the remainder of 2026 and 32% in 2027, while Micron is expected to see 349% growth in its fiscal 2026 fourth quarter and 85% in fiscal 2027.
