TSMC

TSM

Market cap $2.07T

Micron and TSMC are benefiting from AI demand, but Micron's lower valuation, stronger returns and lighter debt may give it the investment edge.

TSMC (TSM) has been upgraded to a Zacks Rank #1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

TSM beats Q2 2026 estimates as revenues rise 33.7%, powered by leading-edge demand, while upbeat Q3 guidance signals further AI-driven growth.

Taiwan Semiconductor Manufacturing TodayTSMTaiwan Semiconductor Manufacturing$397.73 -12.01 (-2.93%) As of 11:30 AM Eastern This is a fair market value price provided by Massive. Learn more.52-Week Range$223.70▼$479.00Dividend Yield0.75%P/E Ratio32.99Price Target$490.00Add to WatchlistInvestors widely view the results of Taiwan Semiconductor Manufacturing Company NYSE: TSM as one of the key barometers of the artificial intelligence (AI) chip trade.

JBTH, TSM and JPM made it to the Zacks Rank #1 (Strong Buy) momentum stocks list on July 17, 2026.

Taiwan Semiconductor raises 2026 capex as AI demand accelerates, with advanced technologies and packaging driving its long-term expansion plans.

Shares of Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) were down 5% Friday morning to $477.81, leading a selloff across semiconductor stocks.

A rotation out of the biggest winners of the recent rally gathered momentum this week, sending chip stocks toward their steepest weekly decline in more than a year and sparking fresh concerns about the sustainability of the AI-driven surge.

TSMC doubles down on AI-driven CapEx, targeting $60–64B in 2026 to address steep compute constraints. AI demand is still going through the roof. High-performance computing now accounts for 66% of Q2 revenue, with datacenter AI and CPU platforms driving +20% sequential HPC growth. Fears of an AI peak are clearly overstated. TSMC's competitive moat remains robust despite rising threats from Samsung and Intel, with gross margins steady at 65% and FCF nearing $47B in 2026.

ASML Holding N.V. and Taiwan Semiconductor Manufacturing Company Limited both raised 2026 revenue and capex outlooks, reflecting surging AI-driven demand for advanced semiconductor capacity. ASML's installed-base management revenue is growing over 30%, with memory-related system sales expected to rise more than 75% this year amid a 'perfect storm' in DRAM. TSMC's advanced node demand is robust, driving its 2026 revenue growth outlook above 40% and capex guidance to $60–64 billion, confirming ASML's expansion plans.