Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod. It also provides AppleCare support and cloud services; and operates various platforms, including the App Store that allow customers to discover and download applications and digital content, such as books, music, video, games, and podcasts. In addition, the company offers various services, such as Apple Arcade, a game subscription service; Apple Fitness+, a personalized fitness service; Apple Music, which offers users a curated listening experience with on-demand radio stations; Apple News+, a subscription news and magazine service; Apple TV+, which offers exclusive original content; Apple Card, a co-branded credit card; and Apple Pay, a cashless payment service, as well as licenses its intellectual property. The company serves consumers, and small and mid-sized businesses; and the education, enterprise, and government markets. It distributes third-party applications for its products through the App Store. The company also sells its products through its retail and online stores, and direct sales force; and third-party cellular network carriers, wholesalers, retailers, and resellers. Apple Inc. was founded in 1976 and is headquartered in Cupertino, California.

Apple Inc. демонстрирует сильные финансовые показатели, включая высокие значения ROE и ROA, что указывает на эффективное управление капиталом и высокую рентабельность. Выручка и чистая прибыль значительно превышают медианные значения по отрасли, что подтверждает устойчивый рост. Однако, компания сталкивается с высокими мультипликаторами, такими как P/S и P/B, которые указывают на возможную переоцененность акций. Долговая нагрузка также выше медианной, что создает дополнительные риски в финансовом плане. Снижение текущего и быстрого коэффициентов говорит о необходимости улучшения ликвидности. Дивидендная доходность остается на уровне 0.09, что относительно низко, но стабильность выплат поддерживает интерес к акциям. В целом, несмотря на высокие показатели доходности и роста, финансовые риски и переоцененность акций требуют осторожности в оценке текущей цены. Устойчивый рост основных показателей также создает позитивный фон для будущих инвестиций.

Apple Inc.

Key Points
Microsoft and Amazon operate the two largest cloud computing services.
AI adoption hasn't reached 20% yet.
The "Magnificent Seven" is a group of stocks that are often pointed to as market leaders. Currently, all seven are among the world's top-10 largest companies. That's an impressive spot to be in, and the group is made up of:
All seven of these stocks have delivered strong investor returns over the past decade, but the question is, which ones will be the best to own going forward? I think two members have been overlooked in the Magnificent Seven, and they look like screaming buys right now.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Some of these stocks get huge headlines daily
It's hard to call the world's largest company by market cap overlooked, so Nvidia is out for my list. Apple products are front of mind for many consumers, and it's a well-publicized company, so it's also eliminated. Furthermore, Apple's artificial intelligence (AI) strategy has been relatively weak, so I'd hesitate to call it an AI company. Alphabet has seen its shares rally massively over the past year thanks to its comeback in the generative AI world, and Gemini is among the top options available, so I wouldn't consider it overlooked, either.
Meta Platforms and Tesla are both trying to position themselves as AI-first companies, although their adoption of AI shows up in different ways. Tesla is integrating AI in its vehicles through autonomous driving and also has other exciting offerings in the works, like its Optimus robot. Meta is working on several AI products, as well as integrating the technology into its social media platforms. Both of these are well-known in the AI realm and don't qualify as "overlooked."
That leaves Microsoft and Amazon as the last two, and I think AI investors need to take another look at them.
Amazon and Microsoft are making money from AI right now
While Amazon and Microsoft are both integrating AI into their everyday inner workings, the real money maker is cloud computing. Amazon and Microsoft are in first and second place in terms of cloud computing market share, and each is seeing huge growth in this sector. During the fourth quarter, Microsoft Azure's revenue rose 39% year over year. Amazon Web Services (AWS) didn't have as fast a growth rate, rising 24%. However, that growth rate was its best quarter in over three years.
These businesses are cash cows, and with insatiable AI demand, both Microsoft and Amazon are understandably spending billions of dollars on data centers to meet that demand. Once the money has been spent to bring the new computing infrastructure online, each company will be able to generate high-margin revenue that boosts profitability. While each company has a different primary business they're known for, their cloud computing segments are a good enough reason to buy their stocks.
On another note, both stocks trade at a discount to recent levels.
Since 2024, these two have consistently traded with a forward price-to-earnings ratio -- based on estimates -- in the low-30s. Now, they trade at a decent discount to those levels. If you've been waiting to buy these two, there has seldom been a better opportunity over the past few years to scoop up these stocks.
Businesses haven't even scratched the surface of what's possible with AI. According to research done by The Motley Fool, less than 20% of businesses currently use AI. That number should skyrocket over the next few years and drive demand for cloud computing services from these two. Right now is a golden buying opportunity, and investors shouldn't squander it.
Should you buy stock in Amazon right now?
Before you buy stock in Amazon, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 15, 2026.
Keithen Drury has positions in Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla and is short shares of Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Most Overlooked Artificial Intelligence (AI) Stocks in the "Magnificent Seven" for 2026

Key Points
AI stocks have slipped in recent weeks, and that’s pushed valuations lower.
The following companies still offer great long-term prospects.
The S&P 500 marched higher in the bull market over the past three years, but in recent times, the index has encountered turbulence. Many concerns have weighed on investors' minds, from worries about high levels of spending on artificial intelligence (AI) to concerns about the war in Iran.
These headwinds have pushed many quality stocks lower. Though it may seem intimidating to buy amid market volatility, tough times actually offer the long-term investor opportunity to get in on stocks for reasonable or bargain prices. And here's the best news of all: History shows us that the major indexes and solid stocks always have gone on to recover and advance over the long run.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
With this in mind, here are my top five AI stocks to buy amid this market pullback.
1. Palantir Technologies
Palantir Technologies (NASDAQ: PLTR) has been around for more than two decades, but the software company truly saw earnings climb over the past few years. The company is benefiting from AI demand thanks to the launch of its Artificial Intelligence Platform (AIP), AI-driven software that helps customers aggregate and analyze their data -- then put it to work.
The results can be game-changing, and companies have realized this, driving strength in Palantir's commercial business. This is big because it represents a new growth driver for Palantir, which in the past relied on government contracts.
Palantir should continue to benefit as companies and organizations aim to apply AI to their problems -- and with AIP, they can do so easily. Palantir stock isn't cheap, but its valuation has dropped significantly, making it a reasonable buy today.
2. Amazon
Amazon (NASDAQ: AMZN) is winning in AI because it is both a user and a seller of AI products and services. The company applies AI to its e-commerce business, gaining efficiency across its fulfillment network and delivery systems. And Amazon Web Services (AWS), the cloud computing unit, offers its customers a wide range of AI tools and platforms.
All of this is boosting growth, and we should see this continue as the AI story unfolds. Meanwhile, Amazon's e-commerce business and non-AI cloud offerings also are generating growth -- and importantly, have proven their strength over the long run.
Today, Amazon stock trades for 27x forward earnings estimates, down from more than 35x just a few months ago, making it a smart buy on the dip.
3. Microsoft
Microsoft (NASDAQ: MSFT) has established itself as a leader in AI through its investment in AI lab OpenAI and through its cloud computing business. Like Amazon, the tech giant offers its customers access to a broad range of AI products and services -- and this is delivering significant growth.
In the latest quarter, Microsoft said that cloud services revenue soared 39% and that demand continues to surpass supply. And at this early stage of the AI story, Microsoft has built out a significant presence, positioning itself to benefit as the next chapters unfold.
Microsoft also generates growth through its software business, gaming, and more, and has demonstrated its strength over time. Today, the stock is on sale, trading for only 24x forward earnings estimates.
4. Apple
Apple (NASDAQ: AAPL) hasn't been a leader in AI, as it took its time to add AI features to its products. But the smartphone leader may now start to benefit from Apple Intelligence, as this AI platform creates yet another reason for Apple fans to spend more time on their iPhones.
The company also is heading into a new era of growth powered by its services revenue. Now that Apple has a massive installed base of active devices, they represent the door to recurring revenue. This is as users sign up for a variety of services, from storage to digital entertainment. In fact, services revenue has reached records quarter after quarter.
Apple stock trades at 30x forward earnings estimates right now, a reasonable level for a company with a long track record of earnings growth and the potential for further growth ahead.
5. SoundHound AI
SoundHound AI (NASDAQ: SOUN) is an expert at voice AI. The company's patent-protected platform translates speech directly to meaning -- no need to translate it into text first. Customers across industries clearly appreciate the quality of this system as they've rushed to sign contracts with the company.
SoundHound's revenue soared almost 100% last year, driven by contracts with customers across automotive, restaurant, retail, financial, and other industries. And in the latest quarter, the company closed a record number of deals.
The voice specialist isn't yet profitable, so if you're a cautious investor, you may prefer to keep it on your watch list, but if you're an aggressive investor, now, on the dip, is a great time to get in on this AI winner.
Should you buy stock in Palantir Technologies right now?
Before you buy stock in Palantir Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palantir Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 15, 2026.
Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, Palantir Technologies, and SoundHound AI and is short shares of Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

My Top 5 AI Stocks to Buy Amid the Market Pullback

Key Points
This company benefits from the success of the existing members of the $2 trillion club.
It's poised for strong revenue growth and margin expansion through the end of the decade.
The stock valuation doesn't reflect the growth potential of the company.
The five existing members of the $2 trillion club are all beneficiaries of the growing demand for artificial intelligence (AI). Alphabet, Microsoft, and Amazon have all seen demand for their cloud computing AI services outstrip their ability to build new data centers and stand up servers. Nvidia is the largest graphics processing unit (GPU) supplier to data centers. And Apple has quietly positioned its iPhone and other devices to capitalize on industry advances in AI.
The next member of the $2 trillion club is an important partner to all five of those companies. The massive spending from the hyperscalers, Nvidia's push to more advanced GPUs and central processing units, and Apple's efforts to prepare its devices for the generative AI era all trickle down to this one company: Taiwan Semiconductor Manufacturing (NYSE: TSM).
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
The stock briefly touched a $2 trillion market cap in late February, but it's since pulled back to just $1.8 trillion. Still, it's up 97% in the past year, as of this writing. I predict it won't be long before it retakes the $2 trillion level and keeps climbing from there.
Powering the most advanced chips
TSMC is the largest contract chip manufacturer in the world, and the gap between it and second place is growing wider. TSMC accounted for almost 70% of all spending by companies such as Nvidia, Apple, and other chip designers in 2025. Second-place Samsung Electronics (OTC: SSNL.F) accounted for just 7% of all spend.
TSMC's market share is poised to keep growing in 2026 and beyond, as it holds a substantial technology lead. Its 2nm process went into mass production at the end of 2025, with all the capacity in its existing facilities supporting the process booked into mid-2027.
To be sure, Samsung is making good progress with its 2nm process, significantly improving the yield of viable chips per silicon wafer. However, yields remain below TSMC's 2nm process. More importantly, Samsung may have some capacity available at its foundries, but it doesn't have the capacity to steal a meaningful workload from TSMC. Furthermore, TSMC's IP library and packaging capabilities are unmatched, creating significant switching costs for anyone considering moving to the smaller competitor.
As a result, TSMC has been able to raise its pricing. It implemented a price hike on its most advanced chipmaking processes at the start of 2026 by 3% to 10%. Reports indicate TSMC plans to raise prices each year through 2029, suggesting very strong pricing power and clear visibility of demand over the next few years.
Indeed, TSMC is investing heavily to meet that demand. Management plans to spend between $52 billion and $56 billion on capital expenditures this year. That's up from $40.9 billion last year. It's spending a significant amount on new facilities in Arizona, which can help mitigate the geopolitical risk of the Taiwan-based company. However, U.S. fabs cost much more to build and operate than Taiwanese fabs, which may be another reason TSMC is planning to raise pricing through 2029 when the last Arizona fab will start volume production.
The path to $2 trillion
With increased spending by Amazon, Microsoft, and Alphabet on data centers and the strong demand for Apple's iPhone seen last quarter, TSMC looks poised for another strong year in 2026. Management guided to 30% full-year revenue growth in U.S. dollar terms, and it expects to see further improvements in gross margin in the first quarter. Through the first two months of the year, revenue is up 30% on an FX-neutral basis, in line with expectations. Note, the U.S. dollar is weaker than it was a year ago.
Management sees those strong results continuing through the end of the decade. It updated its five-year revenue outlook for 2025 through 2029 to a compound annual growth rate of 25% in U.S. dollar terms. A 36% increase in 2025 and expectations for 30% growth in 2026 suggest annualized growth of 20% in 2027 through 2029. It's also worth pointing out that management is historically conservative with its outlooks, which means there could be further upside.
With strong demand for both its 3nm and 2nm processes and planned price hikes, it should be able to achieve high gross margins even as it ramps up its next-generation process. As such, investors can expect earnings growth to outpace its top-line growth.
As such, TSMC shares deserve an earnings multiple well above its current 24 times analysts' expectations. If TSMC can achieve an earnings multiple of 27, its market cap will exceed $2 trillion. Granted, there are geopolitical risks weighing on its valuation. But as TSMC continues to put up solid earnings growth quarter after quarter, even a low earnings multiple will push its value above the $2 trillion threshold.
Should you buy stock in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 15, 2026.
Adam Levy has positions in Alphabet, Amazon, Apple, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing and is short shares of Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Meet the Next Member of the $2 Trillion Club. It's Up 97% in the Past Year, and It Can Still Climb Higher in 2026.

Key Points
Thiel Macro (a hedge fund run by Peter Thiel) sold its positions in Tesla, Microsoft, and Apple in Q4 2025.
Peter Thiel made a similar decision in Q4 2019 with mixed results; he avoided losses but missed out on gains.
The S&P 500 is expensive, but most Wall Street analysts think Tesla, Microsoft, and Apple are undervalued.
Billionaire Peter Thiel was a co-founder of Palantir Technologies, and he still owns a substantial stake in the company (about 100 million shares). However, he also runs a hedge fund, called Thiel Macro, that recently sold every stock in its portfolio.
Specifically, SEC Forms 13F show Thiel Macro had $74 million split between Tesla (NASDAQ: TSLA), Microsoft (NASDAQ: MSFT), and Apple (NASDAQ: AAPL) in the third quarter of 2025, but the hedge fund sold all three positions in Q4 2025 and did not report any new trades.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
I cannot speak to Thiel's motivation, but the decisions suggest he lost confidence in Tesla, Microsoft, and Apple and couldn't find other attractive opportunities across the stock market, possibly due to concerns about valuations. The S&P 500 (SNPINDEX: ^GSPC) was very expensive by historical standards in the fourth quarter.
How seriously should investors take Thiel's $74 million warning? Consider this historical insight.
Thiel Macro issued a similar warning in late 2019
Peter Thiel made a similar move in Q4 2019. He sold every position in his portfolio and did not report any new trades for the next five years. The S&P 500 returned approximately 91% (or 13.8% annually) during that five-year period, but nearly two-thirds of Thiel's portfolio had been invested in put options (bets) against the S&P 500.
On one hand, Thiel avoided heavy losses by selling those put options. On the other hand, he missed out on substantial upside because he did not make any trades for the next five years. In particular, the S&P 500 has performed very well since the artificial intelligence (AI) boom began following the release of ChatGPT in Q4 2022.
The S&P 500 still trades at a historically expensive valuation
The S&P 500 had an average cyclically adjusted price-to-earnings (CAPE) ratio of 39.1 in Q4 2025 (when Thiel Macro sold every stock in its portfolio). That is a substantial premium to the 30-year average of 28.5. In fact, apart from the last few months, the S&P 500 has not recorded a CAPE multiple above 39 since the dot-com crash in 2000.
The S&P 500 has actually gotten a little more expensive in 2026. Its CAPE multiple was 39.2 in February, and the index has historically performed poorly from such high valuations. The chart below shows the S&P 500's best, worst, and average returns over different periods when its CAPE ratio has exceeded 39.
Time Period
S&P 500's Best Return
S&P 500's Worst Return
S&P 500's Average Return
1 Year
16%
(28%)
(4%)
2 Years
8%
(43%)
(20%)
3 Years
(10%)
(43%)
(30%)
As shown above, if the S&P 500's forward returns match the historical average, the index will decline 4% by February 2027, it will tumble 20% by February 2028, and it will plummet 30% by February 2029. But the most alarming statistic is this: The S&P 500 has never produced a positive three-year return when its CAPE ratio exceeds 39.
Of course, past performance is not a guarantee of future results. The CAPE multiple is a backward-looking valuation metric, meaning it does not account for the possibility that S&P 500 earnings will grow more quickly in the future as companies adopt artificial intelligence.
That trend is already evident in the market. "AI adopters in the S&P 500 have posted margin expansion that outpaces both the index as a whole and the individual companies not using AI by 2 to 3 percentage points," according to JPMorgan strategist Kriti Gupta.
Wall Street says Tesla, Microsoft, and Apple are undervalued
In general, Wall Street does not share Peter Thiel's skepticism concerning Tesla, Microsoft, and Apple. While Thiel sold all three stocks in the fourth quarter, most analysts believe they are undervalued.
Among 56 analysts, Tesla has a median target price of $477.50 per share. That implies 22% upside from the current share price of $391.
Among 60 analysts, Microsoft has a median target price of $600 per share. That implies 51% upside from the current share price of $396.
Among 52 analysts, Apple has a median target price of $302.50 per share. That implies 21% upside from the current share price of $250.
Here's the big picture: Thiel Macro has a mixed track record. Thiel beat the S&P 500 over the past year and avoided losses by selling S&P 500 put options in Q4 2019, but he also missed out on gains by staying out of the market for five years. Also, while the S&P 500 is expensive today -- so much so that history says the index could fall sharply in the next few years -- Wall Street remains bullish on Tesla, Microsoft, and Apple.
Should you buy stock in S&P 500 Index right now?
Before you buy stock in S&P 500 Index, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and S&P 500 Index wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
JPMorgan Chase is an advertising partner of Motley Fool Money. Trevor Jennewine has positions in Palantir Technologies and Tesla. The Motley Fool has positions in and recommends Apple, JPMorgan Chase, Microsoft, Palantir Technologies, and Tesla and is short shares of Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Palantir Billionaire Peter Thiel Sells 3 AI Stocks in a $74 Million Warning to Wall Street. History Says This Will Happen Next.

Key Points
Demand for semiconductors and the ancillary products needed to support the data center build-out has surged in recent years.
Broadcom's dizzying assortment of customizable chips and infrastructure products is helping sustain the data center boom.
Despite its critical role in the data center space, the stock is still attractively priced.
There are currently 11 companies worth $1 trillion or more (as I write this), but only four are members of the vaunted $3 trillion club: Nvidia at $4.4 trillion, Apple at $3.7 trillion, Alphabet at $3.6 trillion, and Microsoft at $3 trillion.
Mounting evidence suggests that Broadcom (NASDAQ: AVGO) will join these tech titans in the years to come. The company's products play a crucial role in data centers -- where most artificial intelligence (AI) processing occurs -- and unprecedented demand is fueling robust financial and operating results.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
The semiconductor and data center specialist has a market capitalization of $1.6 trillion (as of this writing), so investors who buy Broadcom right now are looking at potential returns of 91% if the company joins the $3 trillion club. I believe that day is fast approaching.
AI is just the beginning
One of the biggest byproducts of the rapid adoption of AI has been the ongoing expansion of data centers needed to support the technology. While Broadcom is widely known for its semiconductors, the company is also a supplier of networking components and accessories that are critical to the operation of data centers.
The biggest contributor to the company's recent success has been the unrelenting demand for its Application-Specific Integrated Circuits (ASICs). These specialized chips can be customized to be more efficient in specific use cases.
As cloud and data center operators look to rein in costs, ASICs have emerged as a viable alternative to Nvidia's flagship graphics processing units (GPUs), which are the gold standard and currently underpin the AI data center market. Google, for example, relies on Broadcom to design and manufacture the high-performance cores at the heart of its Tensor Processing Units (TPUs). The company is also developing a custom AI accelerator for Meta Platforms.
The results are undeniable
Broadcom's financial results tell the tale. In its fiscal 2026 first quarter (ended Feb. 1), the company generated record revenue of $19.3 billion, up 29% year over year, driving adjusted earnings per share (EPS) of $2.05, a 28% increase.
Management believes the company's growth will continue to accelerate. For the second quarter, Broadcom is guiding for revenue of $22 billion, which would represent an increase of nearly 47%, fueling adjusted EBITDA of $15 billion, up 50%.
Broadcom's mathematical path to $3 trillion
Wall Street expects Broadcom to generate revenue of nearly $105 billion in fiscal 2026, giving the stock a forward price-to-sales (P/S) ratio of 15. Assuming its P/S ratio remains constant, the company will need to generate revenue of $200 billion to support a $3 trillion market cap.
As the chart above illustrates, Wall Street predicts Broadcom's revenue will grow to $196 billion by 2028, putting it within striking distance of the $200 million needed for a $3 trillion market cap. However, Broadcom's tendency to beat analysts' consensus estimates and raise its guidance is well-documented, so it will likely reach that benchmark even sooner.
The data center boom continues to gain momentum, with global capital expenditures expected to reach roughly $7 trillion by 2030, according to global management consultants McKinsey & Company. As a leading supplier of data center components and infrastructure, Broadcom is well-positioned to benefit from this trend. Moreover, ASICs are increasingly viewed as a viable, less expensive alternative to GPUs, thereby increasing Broadcom's opportunity.
Despite the blistering rise in its stock price, Broadcom still trades at 30 times forward earnings. Valuing the stock using the more appropriate price/earnings-to-growth (PEG) ratio yields a multiple of 0.44, when any number less than 1 is the standard for an undervalued stock.
Given the available evidence, I think it's clear that Broadcom stock is a buy -- before it joins the $3 trillion club.
Should you buy stock in Broadcom right now?
Before you buy stock in Broadcom, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Broadcom wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Danny Vena, CPA has positions in Alphabet, Apple, Broadcom, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, Microsoft, and Nvidia and is short shares of Apple. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

1 Unstoppable Stock To Buy Right Now Before It Soars 91% to Join Nvidia, Apple, Alphabet, and Microsoft in the $3 Trillion Club

Key Points
Taiwan Semiconductor is the main chip manufacturer for Nvidia, Apple, AMD, and others.
It controls 72% of the global pure-foundry chip industry.
The company has been growing fast and is projecting further rapid growth through 2029.
Microsoft CEO Satya Nadella said last year that as much as 30% of Microsoft's code was being written by artificial intelligence (AI). I can only imagine that number is higher now.
Humans are still definitely needed to maintain quality, a fact proved by Microsoft appointing Charlie Bell, former head of the company's security business, to now focus exclusively on maintaining the quality of the company's products. He reports directly to Nadella.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Microsoft clearly doesn't plan on cutting the amount of its code written by AI. Nadella himself said it was steadily increasing, and CTO Kevin Scott predicted that by 2030, 95% of the company's code might be written by AI.
With that in mind, what is the best way to play AI becoming a permanent part of the IT industry? By my math, one of the best single-ticker ways to play it is Taiwan Semiconductor Manufacturing (NYSE: TSM).
Small island, big footprint
Taiwan is where a full 60% of all the world's semiconductor chips are produced.
But the country's footprint is even bigger than that implies because 90% of the world's advanced semiconductor chips, those 7 nanometers (nm) or smaller, are produced in Taiwan.
And those are the chips you need to run the high-end AI programs Microsoft and others are using to write their code.
Microsoft uses a lot of Nvidia hardware to run its AI. So does pretty much everyone else. IOT Analytics reports that Nvidia controls 92% of the data center GPU market. Its nearest competitor is Advanced Micro Devices at 4%.
But those Nvidia graphics processor units (GPUs) are manufactured by Taiwan Semiconductor. So are its competitor AMD's, along with Apple, Broadcom, Qualcomm and others, either in whole or in part.
In fact, Nvidia's top-of-the-line Blackwell chip is produced at a Taiwan Semiconductor factory in Arizona.
Creating an even bigger footprint
The semiconductor chip market, and by extension the AI data center hardware market, simply does not exist without Taiwan Semiconductor, which doesn't design any of the chips it produces.
Taiwan Semiconductor is a "pure foundry" company. All it does is produce chips on contract. But it's utterly dominant in the space, with 72% market share as of Q3 2025. Samsung is in second place with 7%.
You've heard of pick-and-shovel plays, I'm sure. But Taiwan Semiconductor is the pick-and-shovel play for the AI industry and the tech industry more broadly.
And the company is expanding its footprint beyond Taiwan to build up its global dominance. The semiconductor factory in Arizona I mentioned is being expanded by Taiwan Semiconductor to produce more chips in the U.S., and ultimately the company plans to have six factories and two advanced packaging facilities in the state.Taiwan Semiconductor also has plans drawn up to expand its manufacturing footprint in Japan and Germany.
And all that expansion is not coming at the cost of the company's bottom line, which remains incredibly healthy.
Trillion-dollar baby
Right now, Taiwan Semiconductor is one of only two non-American companies with a market cap of $1 trillion or more. Its latest results reflect its size and influence well.
2025 saw the company's revenue top $122.4 billion, an increase of 35.9% over 2024. Its diluted earnings per share (EPS) grew 46.4%. Taiwan Semiconductor also maintains stellar profitability with a 45% net profit margin.
The company is also projecting 30% revenue growth for 2026 and a revenue compound annual growth rate (CAGR) of 25% through 2029.
Finally, Taiwan Semiconductor is trading at a price-to-earnings-to growth (PEG) ratio of 1.2 right now, which means it's very close to fair value relative to future earnings projections.
Put all that together, and you have a solid long-term buy-and-hold prospect from the one-ticker pick-and-shovel play of the entire global tech industry.
And if Microsoft wants to generate 95% of its code with AI by 2030, it's going to need a lot more hardware, which Taiwan Semiconductor will gladly produce, and in all likelihood continue its growth streak moving forward.
Should you buy stock in Taiwan Semiconductor Manufacturing right now?
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James Hires has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Microsoft, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing and is short shares of Apple. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Satya Nadella Says "All Software Is Being Rewritten." Here's 1 of the Best Artificial Intelligence (AI) Stocks to Own for 2026.

The S&P 500 Index ($SPX) (SPY) on Friday closed down -0.61%, the Dow Jones Industrial Average ($DOWI) (DIA) closed down -0.26%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.62%. March E-mini S&P futures (ESH26) fell -0.60%, and March E-mini Nasdaq futures (NQH26) fell -0.66%.
Stocks gave up an early advance on Friday and retreated, with the S&P 500 and Dow Jones Industrials falling to 3.5-month lows. Stocks fell after crude oil prices recovered from early losses and rallied more than +3%, as the war in Iran shows no signs of abating. The Wall Street Journal reported on Friday that the US is moving a Marine expeditionary unit to the Middle East as Iran steps up attacks on the Strait of Hormuz.
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Stocks initially moved higher on Friday when WTI crude oil gave up overnight gains and fell more than -2% after the US granted a temporary waiver allowing buyers to take Russian oil cargoes already at sea. The US Treasury granted a month-long waiver to import Russian oil loaded before Thursday, covering Russian crude oil and fuel on about 30 tankers carrying at least 19 million barrels. Crude was also briefly pressured after the Financial Times reported that France and Italy had opened talks with Iran to negotiate a deal to guarantee the safe passage of their ships through the Strait of Hormuz.
Crude prices also found support on Friday after US officials said Iran has begun laying mines in the Strait of Hormuz, an effort that could further complicate US efforts to restart shipping in the waterway. Despite the US destroying most large ships in the Iranian navy used to lay mines, Iran began using smaller boats for the operation on Thursday, according to a US official briefed on the intelligence. Goldman Sachs warns that crude prices could exceed the 2008 record high of close to $150 a barrel if flows through the Strait of Hormuz remain depressed through March.
The latest rhetoric from President Trump and Iranian leader Khamenei suggests there will be no immediate easing in the war that has disrupted energy shipments in the Middle East and spurred concerns about rising inflation. Global bond yields have soared this week on inflation fears, with the German 10-year bund yield rising to a 2.25-year high of 2.99% on Friday and the 10-year T--note yield climbing to a 1.25-month high at 4.29%.
Crude oil prices remain underpinned despite attempts to boost global supplies. The IEA on Wednesday released 400 million barrels from emergency oil stockpiles and said the war against Iran is disrupting 7.5% of global oil supply, and the conflict will cut global oil supply by 8 million bpd this month. The closure of the Strait of Hormuz, through which about a fifth of the world’s oil and natural gas flows, has choked off oil and gas flows due to Iran’s attacks on shipping in the waterway and forced Gulf producers to cut output because they can’t export from the region.
Friday’s US economic news was mixed for stocks. Jan personal spending, Jan JOLTS job openings, and the University of Michigan US Mar consumer sentiment index all rose more than expected. However, Jan capital goods new orders nondefense ex-aircraft and parts, a proxy for capital spending, were weaker than expected. Also, Q4 GDP was revised lower, and the Jan core PCE price index, the Fed's preferred inflation gauge, rose by the most in 1.75 years.
US Jan personal spending rose +0.4% m/m, stronger than expectations of +0.3% m/m. Jan personal income rose +0.4% m/m, weaker than expectations of +0.5% m/m.
The US Jan core PCE price index, the Fed's preferred inflation gauge, rose +3.1% y/y, right on expectations and the highest in 1.75 years.
US Jan capital goods new orders nondefense ex-aircraft and parts were unchanged m/m, weaker than expectations of +0.5% m/m.
US Q4 GDP was revised downward to +0.7% (q/q annualized) from the previously reported +1.4% as Q4 personal consumption was revised lower to +2.0% from the previously reported +2.4%.
The University of Michigan US consumer sentiment index fell -1.1 to 55.5, stronger than the 54.8 expected.
The University of Michigan's US Mar 1-year inflation expectations were unchanged from Feb at 3.4%, below expectations of a rise to 3.7%. The Mar 5-10 year inflation expectations unexpectedly fell to 3.2% from 3.3% in Feb, weaker than expectations of an increase to 3.4%.
US Jan JOLTS job openings rose +396,000 to 6.946 million, stronger than expectations of 6.750 million.
Q4 earnings season is nearly over, with more than 98% of the S&P 500 companies having reported earnings results. Earnings have been a positive factor for stocks, with 74% of the 495 S&P 500 companies that have reported beating expectations. According to Bloomberg Intelligence, S&P earnings growth is expected to climb by +8.4% in Q4, marking the tenth consecutive quarter of year-over-year growth. Excluding the Magnificent Seven megacap technology stocks, Q4 earnings are expected to increase by +4.6%.
The markets are discounting a 1% chance for a -25 bp FOMC rate cut at the next policy meeting on March 17-18.
Overseas stock markets settled lower on Friday. The Euro Stoxx 50 closed down -0.56%. China's Shanghai Composite closed down -0.82%. Japan's Nikkei Stock 225 closed down -1.16%.
Interest Rates
June 10-year T-notes (ZNM6) on Friday closed unchanged. The 10-year T-note yield rose +1.8 bp to 4.279%. June T-notes fell to a 1.25-month low on Friday, and the 10-year T-note yield climbed to a 5-week high of 4.289%. T-notes gave up an early advance on Friday after crude oil prices jumped more than +3%, which fueled inflation fears. Also, mixed US economic news limited gains in T-notes after Jan JOLTS job openings, and the University of Michigan Mar consumer sentiment index rose more than expected, hawkish factors for Fed policy. Conversely, Q4 GDP was revised lower, and Jan capital goods new orders rose less than expected, supportive factors for T-notes. Also, Friday’s stock weakness sparked some safe-haven demand for T-notes.
European government bond yields moved higher on Friday. The 10-year German bund yield rose to a 2.25-year high of 2.992% and finished up +2.6 bp to 2.983%. The 10-year UK gilt yield rose to a 6.25-month high of 4.825% and finished up +4.9 bp to 4.823%.
UK Jan GDP was unchanged m/m, weaker than expectations of +0.2% m/m.
UK Jan manufacturing production rose +0.1% m/m, weaker than expectations of +0.2% m/m.
Swaps are discounting a 3% chance of a -25 bp ECB rate hike at its next policy meeting on March 19.
US Stock Movers
Meta Platforms (META) closed down more than -3% to lead the Magnificent Seven technology stocks lower after the New York Times reported that the company’s latest AI model has underperformed expectations and will be delayed. Also, Apple (AAPL) closed down more than -2%, and Microsoft (MSFT) and Nvidia (NVDA) closed down more than -1%. In addition, Tesla (TSLA) closed down -0.96%. Amazon.com (AMZN) closed down -0.89% and Alphabet (GOOGL) closed down -0.42%.
Chip stocks and AI-infrastructure companies moved higher on Friday, a supportive factor for the broader market. Sandisk (SNDK) closed up more than +6% to lead gainers in the S&P 500, and Micron Technology (MU) closed up more than +4% to lead gainers in the Nasdaq 100. Also, Western Digital (WDC) closed up more than +4%, and Seagate Technology Holdings Plc (STX) closed up more than +2%. In addition, Lam Research (LRCX), Applied Materials (AMAT), and Intel (INTC) closed up more than +1%.
Cryptocurrency-exposed stocks moved higher on Friday as Bitcoin (^BTCUSD) rose more than +1% to a 1-week high. Galaxy Digital Holdings (GLXY) closed up more than +8%, and MARA Holdings (MARA) closed up more than +6%. Also, Strategy (MSTR) and Coinbase Global (COIN) closed up more than +1%.
Mining stocks sold off on Friday as copper prices fell more than -2%, gold prices fell more than -1%, and silver prices dropped more than -4%. Anglogold Ashanti Ltd (AU) closed down more than -9%, and Coeur Mining (CDE) closed down more than -6%. Also, Southern Copper (SCCO) closed down more than -5%, and Newmont Mining (NEM), Hecla Mining (HL), Barrick Mining (B), and Freeport-McMoRan (FCX) closed down more than -4%.
Fertilizer stocks retreated on Friday, giving back some of this week’s sharp gains. Intrepid Potash (IPI) and Mosaic (MOS) closed down more than -6%, and CF Industries Holdings (CF) closed down more than -4%.
EverCommerce (EVCM) closed down more than -15% after forecasting Q1 revenue of $145.5 million to $148.5 million, well below the consensus of $151 million.
Ulta Beauty (ULTA) closed down more than -14% to lead losers in the S&P 500 after it forecast full-year comparable sales will increase 2.5% to 3.5%, below the consensus of 3.5%.
Adobe (ADBE) closed down more than -7% to lead losers in the Nasdaq 100 after CEO Narayen said he will resign and remain in his post until a successor has been appointed.
Insulet (PODD) closed down more than -6% after it issued a voluntary recall of some Omnipod 5 Pods due to a manufacturing issue that led to 18 reports of serious adverse events.
ServiceTitan (TTAN) closed down more than -5% after reporting a Q4 EPS loss of -44 cents, wider than the consensus of -41 cents.
Klarna Group Plc (KLAR) closed up more than +9% after an SEC filing showed Chairman Morits purchased 3.47 million shares through an associated entity between March 3 and March 11.
Charles Schwab (SCHW) closed up more than +2% after it expects revenue growth of 16% in Q1 and said the company’s “diversified financial model continues to deliver.”
Carvana (CVNA) closed up more than +2% after its board approved a 5-for-1 split of its common stock.
Circle Internet Group (CRCL) closed up more than +1% after Mizuho Securities raised its price target on the stock to $120 from $100.
Earnings Reports(3/16/2026)
Dollar Tree Inc (DLTR) and Science Applications International (SAIC).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Iran War Drags Stocks Lower

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in NVIDIA Corp (Symbol: NVDA), where a total volume of 2.9 million contracts has been traded thus far today, a contract volume which is representative of approximately 287.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 149% of NVDA's average daily trading volume over the past month, of 193.2 million shares. Particularly high volume was seen for the $185 strike call option expiring March 13, 2026, with 276,316 contracts trading so far today, representing approximately 27.6 million underlying shares of NVDA. Below is a chart showing NVDA's trailing twelve month trading history, with the $185 strike highlighted in orange:
Eastman Kodak Co. (Symbol: KODK) saw options trading volume of 9,081 contracts, representing approximately 908,100 underlying shares or approximately 145% of KODK's average daily trading volume over the past month, of 626,475 shares. Especially high volume was seen for the $12.50 strike call option expiring April 17, 2026, with 3,111 contracts trading so far today, representing approximately 311,100 underlying shares of KODK. Below is a chart showing KODK's trailing twelve month trading history, with the $12.50 strike highlighted in orange:
And Apple Inc (Symbol: AAPL) saw options trading volume of 622,314 contracts, representing approximately 62.2 million underlying shares or approximately 142.7% of AAPL's average daily trading volume over the past month, of 43.6 million shares. Especially high volume was seen for the $255 strike call option expiring March 13, 2026, with 61,183 contracts trading so far today, representing approximately 6.1 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $255 strike highlighted in orange:
For the various different available expirations for NVDA options, KODK options, or AAPL options, visit StockOptionsChannel.com.
Also see:
TSFG Videos
YINN Average Annual Return
TURB Historical Stock Prices
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Friday Option Activity: NVDA, KODK, AAPL

Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares Core S&P 500 ETF, where 26,700,000 units were destroyed, or a 2.5% decrease week over week. Among the largest underlying components of IVV, in morning trading today Nvidia is up about 0.4%, and Apple is lower by about 0.1%.
And on a percentage change basis, the ETF with the biggest outflow was the SMZ ETF, which lost 30,000 of its units, representing a 37.5% decline in outstanding units compared to the week prior.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

IVV, SMZ: Big ETF Outflows

Voice AI is becoming one of the most competitive and transformative segments of the artificial intelligence market. From in-car assistants and call-center automation to smart devices and enterprise AI agents, voice-driven interfaces are increasingly becoming the gateway through which users interact with AI systems. Two companies standing out in this evolving landscape are SoundHound AI SOUN and Amazon AMZN.
SoundHound is a pure-play conversational AI company focused on voice assistants and agentic AI platforms deployed across industries such as automotive, restaurants, retail and financial services. Amazon, meanwhile, integrates voice AI into a vast technology ecosystem spanning cloud computing, e-commerce, smart devices and advertising, with products like Alexa and AI tools embedded across its services.
Both companies are investing heavily in AI assistants and conversational interfaces, making them interesting comparables at a time when enterprises and consumers increasingly rely on voice-driven automation. However, their scale, business models and financial profiles differ significantly. Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for SoundHound Stock
SoundHound has emerged as one of the most focused companies in the conversational AI market. The company has built an ecosystem centered on its voice assistant platform and “Agentic AI” framework, which allows businesses to deploy intelligent conversational agents across multiple environments such as cars, mobile apps, TVs and customer service platforms. According to its latest results, the company generated $168.9 million in revenues in 2025, nearly doubling year over year, highlighting accelerating demand for enterprise AI solutions.
The company’s technology stack includes proprietary speech recognition models, voice commerce capabilities and enterprise AI agents that automate tasks such as customer support, drive-through ordering and financial service interactions. SoundHound is increasingly winning enterprise deals across automotive, telecommunications, retail and healthcare sectors. During the latest quarter, the company signed more than 100 customer deals and expanded relationships with global automakers and restaurant chains, demonstrating rising adoption of voice AI across industries.
A key strength for SoundHound is its platform-agnostic approach. Unlike big tech ecosystems that prioritize their own models, SoundHound’s architecture allows enterprises to combine third-party AI models with its proprietary technologies. This flexibility positions the company as a neutral AI infrastructure provider rather than a closed ecosystem.
The company is also pushing into emerging areas like voice commerce. Its solutions allow consumers to order food, book travel or make purchases through voice assistants embedded in vehicles or smart devices. Partnerships with merchants and platforms, such as OpenTable and Parkopedia, are expanding this ecosystem.
However, SoundHound faces challenges typical of early-stage AI companies. Despite rapid revenue growth, the firm remains unprofitable, reporting an adjusted EBITDA loss for 2025. Competition from tech giants such as Amazon, Alphabet’s Google GOOGL and Apple Inc. AAPL also remains intense, particularly in consumer voice assistants.
Still, SoundHound’s pure-play exposure to voice AI and strong enterprise adoption trends give it meaningful long-term growth potential if it can scale its platform and move toward profitability.
The Case for Amazon Stock
Amazon approaches voice AI from a fundamentally different position. Rather than focusing solely on conversational AI, the company integrates voice technology across its massive ecosystem of cloud computing, e-commerce, advertising and smart devices.
The company’s AWS cloud platform remains one of the most powerful drivers of AI innovation. AWS revenue grew 24% year over year in the latest quarter, with the segment reaching a $142 billion annualized revenue run rate. This growth is supported by strong demand for AI infrastructure, custom chips and machine learning services.
Amazon’s AI stack includes services such as Amazon Bedrock, which enables enterprises to build generative AI applications using multiple foundation models. Bedrock has become a multibillion-dollar business with customer spending growing rapidly.
In addition to cloud AI services, Amazon continues expanding its voice assistant ecosystem. Alexa and the newer Alexa+ AI platform integrate conversational capabilities across smart speakers, TVs, cars and mobile apps. The company is also introducing agentic AI tools that automate tasks such as shopping, software development and customer support.
Amazon’s financial scale is another major advantage. The company generated $213.4 billion in fourth-quarter 2025 revenue and $21.2 billion in net income, reflecting strong operating leverage across its diversified businesses. Meanwhile, full-year 2025 revenue reached $716.9 billion, up 12% year over year.
Beyond AI, Amazon benefits from multiple growth engines including e-commerce, advertising and logistics. Its advertising business alone generated $21.3 billion in quarterly revenue, increasing 22% year over year.
However, Amazon also faces challenges. The company is investing heavily in AI infrastructure and cloud capacity, with plans to spend around $200 billion in capital expenditures, primarily for AWS and AI data centers. These investments may pressure near-term free cash flow. Additionally, competition in cloud AI services from Microsoft MSFT and Google remains intense.
Still, Amazon’s diversified ecosystem and massive scale give it strong competitive advantages in deploying AI technologies globally.
Market Momentum: Comparing Recent Stock Performance
Over the past three months, SoundHound shares have plunged 30.5%, significantly underperforming the broader technology sector. In contrast, Amazon stock has slipped only 5.9% during the same period.
For context, the broader Zacks Computer and Technology sector declined 0.6% and the S&P 500 fell 0.7% over the same period. The sharper decline in SoundHound suggests investors remain cautious about near-term profitability and valuation risks, whereas Amazon’s diversified business model has helped limit downside volatility.
SOUN Vs AMZN Performance
Image Source: Zacks Investment Research
Valuation Comparison of SOUN & AMZN
Valuation differences between the two companies are striking. Even after a recent pullback, SOUN stock trades at a forward price-to-sales multiple of about 12.99, significantly above the industry average of 6.21. While investors are betting on strong long-term growth, such premium valuation leaves little margin for execution mistakes.
Amazon, despite being one of the world’s largest technology companies, trades at a much lower forward price-to-sales multiple of 2.73. The lower valuation reflects Amazon’s maturity and diversified revenue streams, but it also suggests that the market may be pricing in more sustainable long-term growth relative to risk.
SOUN Vs AMZN Valuation
Image Source: Zacks Investment Research
Earnings Outlook: Estimate Revision Trends
Analyst sentiment also differs between the two companies. Over the past 30 days, the Zacks Consensus Estimate for SoundHound’s 2026 loss per share has widened to 9 cents from 6 cents, although the expected loss remains narrower than the previous year’s loss of $0.13 per share. The company is projected to deliver strong revenue growth of 37.8% in 2026, reflecting continued expansion in enterprise AI adoption.
SOUN Stock Estimate Revision
Image Source: Zacks Investment Research
For Amazon, analyst estimates have moved in the opposite direction. The consensus estimate for 2026 earnings per share has increased to $7.78 from $7.72, representing an 8.5% year-over-year earnings growth. Revenue is expected to rise 12.2% in 2026, supported by cloud computing, advertising and AI services.
AMZN Stock Estimate Revision
Image Source: Zacks Investment Research
These revisions suggest improving earnings confidence in Amazon while SoundHound remains in a high-growth but still unprofitable phase.
SOUN Vs AMZN: Which Stock Has Better Upside?
Both SoundHound and Amazon currently carry a Zacks Rank #3 (Hold), indicating balanced risk-reward profiles in the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SoundHound offers higher growth potential as a pure-play voice AI company benefiting from enterprise adoption and the rise of agentic AI platforms. If the company successfully scales its technology and moves toward profitability, it could deliver outsized long-term returns.
However, Amazon appears to hold the stronger investment case today. Its dominant position in cloud computing, expanding AI ecosystem and diversified revenue streams provide a far more stable financial foundation. Additionally, Amazon’s lower valuation multiple and positive earnings estimate revisions suggest a more attractive risk-adjusted opportunity.
In short, SoundHound may appeal to investors seeking high-growth AI exposure, but Amazon’s scale, profitability and improving earnings outlook give it the edge as the better AI voice assistant stock for now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.