The Glasgow crowd went into a frenzy as Taylor dropped Davies in the third and piled on the pressure until the Londoner had taken enough in the seventh.
Davies, in shades of Kell Brook against Errol Spence, stopped fighting and scrunched up his face, leave the referee with no choice but to step in.
With the win, Taylor hits a perfect ten victories and moves on to a possible step up to European level, whilst Davies drops to 15-1 and goes back to the drawing board.
In London, and competing In just his fourth fight, big hitting Daniel Dubois claimied the WBC Youth heavyweight strap with a second round knockout of late replacement Mauricio Barragan.
Dubois dropped Barragan with his first punch in anger and put the Uruguayan out of his misery in the very next session.
Bradley Skeete claimed the British welterweight title outright with a straightforward triumph over Dale Evans.
The 29 year-old was on dominant form throughout to take a wide points decision with all three judges.
In a highly-anticipated rematch, Darryl Williams edged out Jahmaine Smyle via majority decision in another ten round battle amidst calls for a third bout.
Williams dropped Smyle in the third, but the Leicester man rallied to give the Ricky Hatton-trained fighter a run for his money once again.
In a superb fight at London’s Copper Box Arena on Saturday, rugged Gary Corcoran defeated flashy Larry Ekundayo via a controversial split decision.
Ekundayo seemed to have done enought to keep his undefeated record intact through the twelve rounds, although it was Corcoran who took the judges decision via scores of 115-113 and 114-113.
Former Prizefighter champion Ekundayo got the nod with one official 114-113 but to no evail and drops to 12-1.
Corcoran picks up a fringe version of the WBO welterweight title for his trouble and can expect a considerable rankings boost once the new list is revealed.
Earlier, number one heavyweight contender Hughie Fury fought a six-round exhibition after being blocked from competing in a sanctioned bout by the World Boxing Organisation.
Fury is mandatory for Joseph Parker’s WBO heavyweigh title and previously pulled out of a May 6 encounter with the Kiwi in New Zealand.
It had been hoped the 22 year-old’s low-key bout with journeyman Pole Kamil Sokolowski would extend his record to 21-0, although Fury must now wait until trading with Parker to earn his 21st win.
The Parker fight will happen on September 23 in Manchester and finally put an end to almost a year of planning for the contest, which could see Hughie follow cousin Tyson as a world champion.