Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides complementary metal oxide silicon wafer fabrication processes to manufacture logic, mixed-signal, radio frequency, and embedded memory semiconductors. The company also offers customer support and engineering services, as well as manufactures masks. Its products are used in high performance computing, smartphone, Internet of things, automotive, and digital consumer electronics. The company was incorporated in 1987 and is headquartered in Hsinchu City, Taiwan.

Taiwan Semiconductor Manufacturing Company Ltd.

Key Points
Nvidia has played a pioneering role in the proliferation of AI, but it wouldn't have been possible without this company.
Nvidia, along with many other chip designers and consumer electronics companies, relies on the manufacturing expertise of this Taiwan-based giant.
The wide range of industries that this Nvidia partner caters to makes it one of the best ways to play the global AI boom.
Nvidia (NASDAQ: NVDA) is considered a pioneer in the artificial intelligence (AI) hardware market, and rightly so, as the chip designer's graphics processing units (GPUs) have allowed cloud computing companies and others to train AI models and run inference applications.
The parallel computing power of Nvidia's GPUs makes them ideal for performing a large number of calculations simultaneously, which is precisely what's required for training AI models. Also, these chips are now gaining traction in AI inference as well, thanks to their ability to quickly make predictions and decisions using the trained model.
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Not surprisingly, Nvidia has established a solid foothold in the AI chip market. It towers above its competitors with an estimated market share of 80% in AI data center accelerators. However, Nvidia's dominance wouldn't have been possible without its foundry partner Taiwan Semiconductor Manufacturing (NYSE: TSM), which is the real kingpin of the AI chip market.
Let's look at the reasons why TSMC is a bigger power player than Nvidia in AI chips.
TSMC's dominant foundry position makes it the go-to manufacturer of AI chips
TSMC operates semiconductor fabrication plants across the globe, which are used to manufacture chips based on designs provided by its customers. It is worth noting that TSMC doesn't design its own chips. It simply makes chips for fabless semiconductor companies that don't have production facilities of their own.
Nvidia is one such company that utilizes TSMC's facilities for manufacturing its AI chips. Equity research and brokerage firm Bernstein estimates that Nvidia could account for over a fifth of TSMC's top line this year, up significantly from around 5% to 10% a couple of years ago. That's not surprising, as Nvidia has been aggressively looking to secure more of TSMC's chipmaking capacity.
Taiwan-based business newspaper Economic Daily News pointed out earlier this year that Nvidia has reportedly secured more than 70% of TSMC's advanced chip packaging capacity for 2025 in a bid to meet the robust demand for its AI GPUs. However, Nvidia is not the only company that's in line to utilize TSMC's fabs.
Apple (NASDAQ: AAPL) is another major customer, and its contribution toward TSMC's top line is expected to be identical to that of Nvidia's in 2025. The consumer electronics giant taps TSMC to manufacture the processors that go into popular devices such as iPhones and iPads, and it has reportedly pre-booked the foundry giant's 2-nanometer (nm) capacity to mass produce chips for its next-generation iPhones.
It is worth noting that Apple had reportedly booked all of TSMC's 3nm supply in 2023 to make processors for the iPhone and other devices. And now that Apple is looking to bolster the on-device AI capabilities of its devices, it is expected to move to the 2nm node so that it can pack more computing power and increase energy efficiency.
Apple, however, has company, as another smartphone chip designer -- Qualcomm -- is expected to produce chips based on TSMC's 2nm process node as well. On the other hand, Nvidia's peers in the AI accelerator market are also partnering with TSMC to manufacture advanced chips.
Marvell Technology, for instance, is reportedly going to adopt TSMC's sub-3nm process nodes to manufacture the next generation of its custom AI processors, which are in tremendous demand from cloud computing giants to reduce costs. Meanwhile, AMD is getting its central processing units (CPUs) and GPUs that power both servers and personal computers (PCs) manufactured by TSMC as well.
Clearly, TSMC is the power player in the AI chip market. Its plants manufacture chips that go into a wide variety of applications, ranging from smartphones to PCs to data centers, and all of these markets are on track to record secular growth because of AI. Importantly, TSMC is taking steps to ensure that it can meet the incredible demand from all of these markets.
An aggressive expansion plan should help it satisfy the booming AI chip demand
TSMC's 2025 capital expenditure forecast of $38 billion to $42 billion points toward a significant increase over its 2024 outlay of $30 billion. It is going to invest 70% of its 2025 capex on advanced process technologies that are used for making AI chips, which isn't surprising.
Moreover, the company has aggressive long-term expansion plans as well. It has outlined an investment of $165 billion in the U.S. to build more plants, while it is also building factories in Taiwan and Europe. These expansionary moves should enable TSMC to capitalize on the AI chip market's impressive long-term growth.
According to one estimate, the global AI chipset market could clock an annual growth rate of 31% through 2033, which means that TSMC has the ability to sustain its terrific growth for years to come. Not surprisingly, analysts are expecting a pick-up in TSMC's growth going forward.
That's why it would be a good idea to buy this AI stock hand over fist right now, as it seems undervalued. TSMC's earnings are expected to jump by 34% this year, which is nearly five times the projected increase in the S&P 500 index's average earnings. With the stock trading at 28 times earnings, investors are getting a good deal on TSMC based on the potential upside it could deliver.
Should you invest $1,000 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 $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,063,471!*
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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Marvell Technology. 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.

Everyone's Watching Nvidia -- but This AI Supplier Is the Real Power Player

Taiwan Semiconductor Manufacturing Company’s TSM recently reported financial results for the second quarter of 2025 highlight how artificial intelligence (AI) has become a key growth driver for its business. Revenues from its High-Performance Computing (“HPC”) platform, which includes most AI-related demand, increased 14% sequentially and accounted for 60% of second-quarter total sales.
Taiwan Semiconductor’s second-quarter revenues and EPS surged 44% and 67%, respectively, year over year in the US dollar terms. This robust growth was mainly driven by the strong adoption of TSM’s advanced 3nm and 5nm chips used in AI accelerators and data centers. The company is confident that the AI boom will continue supporting growth in the second half of 2025. It estimates full-year revenues to grow by around 30% year over year.
Rising AI workloads, on-device computing and sovereign AI projects are creating long-term demand for leading-edge chips. Taiwan Semiconductor’s close relationship with cloud and chip companies, along with aggressive investments in advanced nodes like N2 and A16, positions it well to capture this trend.
Taiwan Semiconductor’s leadership in process technology and growing manufacturing presence across the United States, Europe and Asia help strengthen its position. The company is also expanding its packaging and research & development capabilities to support future AI needs.
If AI adoption continues at its current pace, Taiwan Semiconductor could see sustained demand for its leading-edge chips. The Zacks Consensus Estimate for 2025 revenues is pegged at $118.18 billion, indicating a 31.1% increase from 2024.
How TSM’s Rivals Are Responding to the AI Boom
Intel INTC and GlobalFoundries GFS are also trying to grow their presence in AI chip manufacturing.
Intel is investing heavily in its foundry business, aiming to produce advanced chips. The company is currently focusing on its 18A process, which signifies 1.8nm chips. Intel’s 18A process is claimed to have higher performance and efficiency, which will help the company better compete with Taiwan Semiconductor’s upcoming N2 chips.
GlobalFoundries focuses more on mature nodes. However, the company is witnessing some AI-related demand, especially in edge computing and embedded AI. GlobalFoundries is working to expand capacity in the United States and Europe to attract customers looking for supply-chain flexibility.
TSM’s Share Price Performance, Valuation and Estimates
Shares of Taiwan Semiconductor have risen around 22.9% year to date compared with the Zacks Computer and Technology sector’s gain of 10.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, TSM trades at a forward price-to-earnings ratio of 23.22, lower than the sector’s average of 27.89.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Taiwan Semiconductor’s 2025 and 2026 earnings implies a year-over-year increase of 37.5% and 13.1%, respectively. Estimates for 2025 and 2026 have been revised upward in the past seven days.
Image Source: Zacks Investment Research
Taiwan Semiconductor currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
#1 Semiconductor Stock to Buy (Not NVDA)
The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.
One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.
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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.

AI Drives 60% of TSM's Q2 Revenues: Will the Growth Momentum Last?

Taiwan Semiconductor (NYSE: TSM) is a leading supplier to companies like Nvidia (NASDAQ: NVDA), fueling the growth of artificial intelligence.
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*Stock prices used were the afternoon prices of July 22, 2025. The video was published on July 24, 2025.
Should you invest $1,000 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 $634,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,046,799!*
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Parkev Tatevosian, CFA has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Massive News for Taiwan Semiconductor Stock Investors

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the VanEck Semiconductor ETF (Symbol: SMH) where we have detected an approximate $788.2 million dollar outflow -- that's a 2.9% decrease week over week (from 95,441,874 to 92,691,874). Among the largest underlying components of SMH, in trading today Taiwan Semiconductor Manufacturing Co., Ltd. (Symbol: TSM) is off about 0.3%, Analog Devices Inc (Symbol: ADI) is off about 1.1%, and ASML Holding NV (Symbol: ASML) is up by about 1%. For a complete list of holdings, visit the SMH Holdings page » The chart below shows the one year price performance of SMH, versus its 200 day moving average:
Looking at the chart above, SMH's low point in its 52 week range is $170.11 per share, with $293.53 as the 52 week high point — that compares with a last trade of $285.92. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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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.

Notable ETF Outflow Detected - SMH, TSM, ADI, ASML

Key Points
Geopolitical risks haven’t gone away.
The semiconductor industry could face challenges even if AI demand remains strong.
Approaching the sector with a long-term mindset can help you endure volatility.
ASML (NASDAQ: ASML) stock was down over 11% at one point during the trading day July 16 before closing the session down 8.3%. However, the growth stock continued falling over the next couple of days and is now down 21% over the past year.
The company makes advanced lithography machines that chip manufacturers use to produce chips designed by companies like Nvidia (NASDAQ: NVDA) and Broadcom (NASDAQ: AVGO). ASML's extreme ultraviolet (EUV) systems pack an unprecedented number of transistors into each silicon wafer, advancing precision and lowering manufacturing costs. These machines are the muscle behind the artificial intelligence (AI) revolution.
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Here's what you need to know about the ASML sell-off, and whether it could have ripple effects that could drag Nvidia and Broadcom down from their all-time highs.
ASML's solid results were overshadowed by its guidance
ASML reported its most recent quarterly results on July 16. It had a great second quarter and is guiding for 15% revenue growth and slightly higher gross margins for the full year. The semiconductor equipment supplier reaffirmed its 2030 targets, which forecast revenue to increase by 55% to 112% from its 2024 results of 28.3 billion euros ($32.81 billion), and gross margin expansion from the low 50% range to 56% to 60%.
The margin expansion is likely due to the company's anticipated increase in EUV machines in its sales mix. Right now, its older and less advanced deep ultraviolet machines (DUV) still make up the bulk of new sales. ASML brings in a significant amount of revenue by servicing existing machines for its customers. Margins should grow as the sales mix shifts to more expensive EUV machines -- especially its roughly $400 million ultra-powered high-numerical aperture (high-NA) versions.
The near-term results and the 2030 targets aren't the issue. Rather, it's a murky medium-term outlook. ASML cited geopolitical challenges and macroeconomic headwinds that are affecting its customers and the timing of their spending.
The company is directly affected by tariffs on imports to its U.S. manufacturing centers and field operations. ASML also sources components from around the world to build its machines, so it has a complex supply chain that is vulnerable to tariffs.
Although ASML is a Dutch company, the Netherlands works closely with the U.S. on trade policy. This limits ASML's ability to sell products to China, despite China's rapidly growing demand for semiconductor lithography systems. As it stands today, ASML can't sell its most advanced systems to China -- just older, lower-cost units.
There's also the indirect effect of tariffs, which could involve a more severe industrywide slowdown and a shift in customer sentiment. Given the uncertainty, ASML said that it cannot confirm it will grow in 2026. That's likely the reason that the stock is selling off.
Nvidia and Broadcom operate upstream of ASML along the AI value chain
ASML's latest earnings report and management commentary were a reminder of the cyclicality of the semiconductor industry. Despite widespread enthusiasm and spending on AI, downturns can still happen for geopolitical or macroeconomic reasons, from tariffs and trade policy to interest rates and the timing of the investment cycle.
Before Nvidia and Broadcom investors start to worry, it's important to remember that ASML operates in a very different sales cycle from those two companies. ASML sold just 76 new lithography units in its latest quarter. That's less than one sale per day. You would be hard-pressed to find a company with a market cap of nearly $290 billion with an order volume that small. But it's a testament to the sophistication of ASML's cutting-edge tech. The company has a virtual monopoly, and its customers are willing to pay a high price for its machines because they're worth it in the long run if they can reduce costs and improve precision. But because these units are so expensive, it's easier for a key customer to decide to delay a purchase by a year or two to wait for more favorable conditions.
In its latest quarter, ASML said that 35% of new system sales were in Taiwan, while 27% were in China, 19% were in South Korea, 10% were in the U.S., and 9% were in other places. You can bet that the majority of sales in Taiwan are going to Taiwan Semiconductor Manufacturing (NYSE: TSM), South Korea is probably Samsung Electronics (OTC: SSNL.F), and the U.S. is mostly Intel (NASDAQ: INTC).
Nvidia and Broadcom have international exposure, too. But their sales cycle is far different because they aren't just selling a few big-ticket items every quarter. Nvidia makes most of its money selling graphics processing units (GPUs), software, and associated infrastructure to build AI ecosystems for hyperscalers. Hyperscalers like Microsoft (NASDAQ: MSFT) are raking in the free cash flow and pouring capital expenditures into AI investments -- benefiting Nvidia.
Broadcom is experiencing explosive growth from hyperscalers for its AI chips. But Broadcom does a lot outside AI, from network connectivity to cybersecurity, broadband, wireless, and infrastructure software.
Both Nvidia and Broadcom have international exposure and are vulnerable to trade tensions and tariff risks, but their sales cycles are distinctly different from ASML's. So ASML's warning of an impending slowdown doesn't necessarily mean the same for Nvidia and Broadcom. However, if fabs (the fabricators) slow down their investment, it could lead to a backlog buildup, which could delay shipments for chip designers.
Zooming out in the semiconductor industry
The sell-off in ASML stock is a reaction to near-term guidance and has nothing to do with the long-term investment. The best way to approach any chip stock, especially ones with expensive valuations like Nvidia and Broadcom, is to take a long-term view, preferably at least three to five years.
If you believe in the long-term growth of global connectivity and AI and that Nvidia and Broadcom will remain industry leaders, then both stocks are probably worth buying and holding. Even a few quarters or a few years of bad earnings will ultimately be made up for by the long-term investment thesis playing out.
However, the further stock prices outpace earnings growth, and the more expensive valuations become, the more hot air fills the stock price, which can go out just as fast as it went in. Therefore, it's essential to approach these stocks with the right mindset and accept that geopolitical and macroeconomic factors can have a massive effect on the stock prices of these companies in the short term.
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Daniel Foelber has positions in ASML and Nvidia. The Motley Fool has positions in and recommends ASML, Intel, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft, short August 2025 $24 calls on Intel, and short January 2026 $405 calls on Microsoft. 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.

Does the ASML Stock Sell-Off Signal Trouble for Nvidia and Broadcom?

Showing signs of a comeback, Intel INTC stock has started to rebound and is up +15% in 2025, with the chip giant’s much-anticipated Q2 results approaching after-market hours on Thursday, July 24.
In regard to the anticipation, Intel is still one of the world's largest semiconductor companies but has infamously lost market share to Nvidia NVDA, AMD AMD, and Arm Holdings ARM.
This makes it a very worthy topic of whether it’s time to buy, hold, or sell Intel stock, which is still down 40% over the last three years to vastly trail the broader indexes and its aforementioned competitors.
Image Source: Zacks Investment Research
Intel’s Turnaround Strategy
Although Intel hasn’t given its turnaround strategy a flashy name, optimism has swooned after the company appointed Lip-Bu Tan as its new CEO in March. As a seasoned semiconductor executive who previously served as CEO of Cadence Design Systems CDNS, Tan has simply called Intel’s reemergence plan a “bold turnaround strategy.”
Getting “back to the basics”, Tan’s emphasis has been on refocusing Intel on engineering excellence, streamlining management to place a priority on an engineering-first culture.
Key Points of Intel’s Turnaround Strategy
Foundry Restructuring: Intel has separated its foundry business into a separate subsidiary called Intel Foundry Services (IFS) to better compete with Taiwan Semiconductor TSM while focusing on its core business as a supplier of microprocessors and chipsets.
Aggressive AI pricing: Intel’s Gaudi 3 AI accelerator is priced significantly lower than Nvidia’s comparable offerings, aiming to disrupt the AI hardware market.
Intel’s Q2 Expectations
Although Intel has regained some ground in the PC chip market, Q2 sales are thought to have dipped 7% to $11.87 billion compared to $12.83 billion a year ago. On the bottom line, Q2 earnings are expected at $0.01 a share from EPS of $0.02 in the prior year quarter.
EPS Outlook & Revisions
Optimistically, Intel’s annual earnings are projected to climb swing to $0.27 per share in fiscal 2025 versus an adjusted loss of -$0.13 a share last year. However, it's noteworthy that FY25 EPS estimates have noticeably declined from projections of $0.50 a share 90 days ago and are slightly down in the last week.
Similarly, Intel’s EPS is forecasted to sharply rebound to $0.70 in FY26, but estimates have also trended lower in the last seven days and have now dropped 37% over the last three months from projections of $1.12 per share.
Image Source: Zacks Investment Research
Bottom Line
Unfortunately, despite Intel’s somewhat promising turnaround strategy, the trend of declining earnings estimate revisions does suggest it may be time to fade this year's rally. Correlating with such, Intel stock currently lands a Zacks Rank #4 (Sell), and the chip giant’s Q2 report will be critical to reconfirming what is hopefully a return to prominence at some point.
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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.

Time to Buy, Hold, or Sell Intel Stock as Q2 Earnings Approach?

Key Points
Companies whose products are being placed inside data centers are seeing massive growth.
Cloud computing providers are also benefiting from the massive demand for artificial intelligence.
Although the artificial intelligence (AI) arms race has been underway since the start of 2023, there is no shortage of stocks that remain excellent investments at present. We're far from reaping the benefits of the rise of AI across the entire economy, and significant infrastructure still needs to be built out.
This is where I'm focusing a lot of my attention as AI infrastructure is a key area where companies are generating significant revenue from AI investments. I have identified 10 stocks that play in this realm and look like intriguing buys now. Investors should use this list as a great starting point to learn more about each company.
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1. Nvidia
No good AI investing list is complete without the undisputed king of AI: Nvidia (NASDAQ: NVDA). Nvidia's graphics processing units (GPUs) have been the computing muscle behind AI models from the start, and it continues to lead this important industry.
There is still a significant amount of AI buildout underway, and Nvidia's GPUs will continue to handle this demand. Although the stock is currently the largest in the world, it still has plenty of upside left.
2. Broadcom
Broadcom (NASDAQ: AVGO) also provides AI computing hardware, featuring custom AI accelerators designed in collaboration with the end user. These are being deployed alongside GPUs and represent an excellent way to cut costs when building out inference capacity. Broadcom is a rising player in the AI space, and investors should keep a close eye on it over the next few years.
3. Taiwan Semiconductor
Taiwan Semiconductor Manufacturing (NYSE: TSM) produces chips for companies like Nvidia and Broadcom that lack the in-house capabilities to do so themselves. They're a key part of the AI value chain and could be one of the most critical companies on Earth.
TSMC's management forecasts a substantial 45% compound annual growth rate (CAGR) for its AI-related revenue over the five-year period starting in 2025. That would lead to significant growth if this guidance proves accurate.
4. ASML
Taiwan Semiconductor's factories are equipped with machines from ASML (NASDAQ: ASML), as the company is the only one in the world with extreme-ultraviolet lithography technology. Their machines help lay the tiny electrical traces on chips and are used in every high-tech chip production facility due to their technological monopoly.
As more chip production comes online to meet the rising demand for AI, ASML will continue to sell more machines.
5. Digital Realty Trust
Digital Realty Trust (NYSE: DLR) offers a distinct approach to participating in the AI arms race. It's a real estate investment trust, which normally doesn't land on tech investors' radars. However, Digital Realty is focused on building data centers that it can rent out to clients.
This is a massive and quickly growing field, and with Digital Realty's nearly 3% dividend yield, it's an excellent dividend payer as well.
6. Alphabet
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is playing both sides of the AI arms race, as it develops its own AI models while also facilitating those of others.
One area it helps further AI is through its cloud computing wing, Google Cloud. Cloud computing providers build computing capacity and rent it out to clients. This can be used for traditional computing workloads or AI. AI demand has driven cloud computing into another growth wave, and it's expected to continue growing for many years.
7. Amazon
Of the three I'll discuss, Amazon (NASDAQ: AMZN) has the largest cloud computing platform, Amazon Web Services (AWS). AWS is a key part of Amazon's financial picture, as it provided 63% of Amazon's operating profits in Q1. AWS also grew at a 17% pace in Q1, indicating that Amazon's largest profit source is rapidly expanding.
AWS will be an essential part of Amazon's growth picture moving forward, and understanding that is key to investing in Amazon.
8. Microsoft
Microsoft (NASDAQ: MSFT) has the second-largest cloud computing platform, Azure. Although Microsoft has partnered with OpenAI, the makers of ChatGPT, it's also facilitating many other AI models on its platform. Microsoft aims to provide a platform on which clients can build their AI models, and this endeavor has been largely successful, given Azure's growth.
Unfortunately, Microsoft only provides us with Azure's growth rate (33% in its latest quarter), but it's likely a significant contributor to Microsoft's overall revenue and profits. Considering the bright cloud computing outlook, this makes it an excellent AI stock pick.
9. Arista Networks
Arista Networks (NYSE: ANET) is one of the lesser-known names on this list, but its products are crucial for data centers to operate at a high level. Their networking solutions enable clients to connect data centers across multiple locations, a crucial aspect of AI processing and cloud computing.
Without Arista's technology, cloud computing and AI wouldn't look the same as they do today. And considering the massive data center buildout that's coming, it has plenty of room to grow.
10. Synopsys
Synopsys (NASDAQ: SNPS) provides a software program that enables customers to design semiconductors. Without Synopsys' technology, the research and development cycle for chips would be significantly longer, which would slow the pace of innovation in the AI world. Synopsys is a key part of AI advancement, and its software will continue to be a must-have for those involved in the AI field.
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, 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 Nvidia 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 $665,092!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,050,477!*
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Keithen Drury has positions in ASML, Alphabet, Amazon, Broadcom, Digital Realty Trust, Nvidia, Synopsys, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends ASML, Alphabet, Amazon, Arista Networks, Digital Realty Trust, Microsoft, Nvidia, Synopsys, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. 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.

10 No-Brainer Artificial Intelligence (AI) Stocks to Buy Right Now

Key Points
TSMC posted strong Q2 growth, as demand for artificial intelligence (AI) chips continues to surge.
While tariff uncertainty remains, the company upped its guidance, given the strong demand for AI chips it is seeing.
The company remains one of the best-positioned companies to benefit from the ongoing AI data center build-out.
Shares of Taiwan Semiconductor Manufacturing (NYSE: TSM) jumped after the semiconductor contract manufacturer reported strong Q2 results and issued an upbeat outlook. The stock is now up nearly 25% on the year.
The company continues to be an artificial intelligence (AI) infrastructure winner, as it is the world's leading maker of advanced chips for companies like Nvidia and Apple.
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Let's take a closer look at TSMC's results to see if the stock has more upside, or whether it's too late to buy the stock.
No slowdown in sight
With rivals Intel and Samsung struggling, TSMC has established itself as an invaluable part of the semiconductor value chain due to its scale and technological expertise. The company is the clear leader in manufacturing advanced chips, and more and more of its revenue is coming from its leading-edge nodes. Nodes are a reference to the size of how many transistors can be fit on a chip, and the smaller the node, the greater the processing power and efficiency a chip can have.
In Q2, nodes 7 nanometers (nm) and under accounted for 74% of its revenue, up from 67% a year ago. Its newest 3-nm technology made up 24% of total wafer revenue, jumping from just 15% a year ago.
AI chips were once again the biggest driver of TSMC's revenue growth, with high-performance computing (HPC) accounting for 60% of its revenue in the quarter. HPC revenue climbed 14% sequentially. A year ago, the segment accounted for 52% of the company's revenue.
This helped drive a 44% increase in the company's revenue to $30.1 billion. Its earnings per American depositary receipt (ADR) soared 67% to $2.47 from $1.48 a year ago, while its EPS in local currency climbed 61%.
TSMC once again saw strong year-over-year gross margin expansion; however, it is expecting to see pressure in the future. Gross margin increased 540 basis points year over year to 58.6%, despite the company seeing a currency headwind and dilution from the start-up of its new fab in Arizona. It expects gross margin to fall to 56.5% in Q3 due to currency and the further ramp-up of its new facilities in the U.S. and Japan. It also expects its non-Taiwanese fabs to negatively impact its gross margins by around 2% to 3% a year and then widen to 3% to 4% a year in the later stages of its build-out.
Looking ahead, TSMC forecast Q3 revenue to come in between $31.8 billion and $33 billion, representing about 38% year-over-year growth at the midpoint. It projected its operating margin to range from 45.5% to 47.5%.
TSMC raised its full-year revenue forecast, with it now projecting 30% growth, up from prior guidance of "close to the mid-20% range." The company pointed to accelerating AI demand as a key driver, noting that data center orders have strengthened meaningfully even compared to just three months ago. It also cited growing momentum from sovereign AI projects. That's translating into strong demand for its leading-edge 3-nm and 5-nm chip technologies.
TSMC said it hasn't seen any change in customer behavior due to tariffs, but noted that the risk remains. The company is currently in the middle of investing $165 billion in advanced semiconductor manufacturing in the U.S. The construction of its second fab in Arizona is already complete, and its first fab is already in high-volume production. It has plans to build six fabs, two advanced packaging facilities, and create an R&D center.
Is it too late to buy TSMC stock?
While tariff and trade policy concerns regarding semiconductors remain, the simple fact of the matter is that no other foundry in the world has the scale and technological expertise of TSMC. As such, it will continue to manufacture the majority of advanced chips and is one of the best-positioned companies to continue to benefit from the ongoing AI infrastructure build-out.
While the company is expecting to see some gross margin pressure due to its overseas expansion, it has also seen strong pricing power, so it could have the ability to surprise to the upside in the coming years in this regard. TSMC also should benefit from the recent change of heart by the U.S. to allow Nvidia and Advanced Micro Devices to sell certain chips into China.
Meanwhile, TSMC's stock remains attractively valued, trading at a forward price-to-earnings (P/E) ratio of 26 times based on analysts' 2025 estimates and price/earnings-to-growth ratio (PEG) of around 0.7. Stocks with PEG ratios below 1 are typically considered undervalued.
Taken altogether, I think TSMC continues to be positioned as a long-term winner, and that it's not too late to buy the stock.
Should you invest $1,000 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 $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,056,790!*
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*Stock Advisor returns as of July 21, 2025
Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. 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.

Taiwan Semiconductor Manufacturing Shares Rise on Strong Outlook. Is It Too Late to Buy the Stock?

In today's video, I discuss recent updates affecting Nvidia (NASDAQ: NVDA), Advanced Micro Devices (NASDAQ: AMD), and other semiconductor companies. To learn more, check out the short video, consider subscribing, and click the special offer link below.
*Stock prices used were the after-market prices of July 17, 2025. The video was published on July 17, 2025.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, 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 Nvidia 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 $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,056,790!*
Now, it’s worth noting Stock Advisor’s total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of July 21, 2025
Jose Najarro has positions in Advanced Micro Devices and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Nvidia and AMD Stock Investors Got Massive News From TSMC

The following are the top rated Information Technology stocks according to Validea's Growth Investor model based on the published strategy of Martin Zweig. This strategy looks for growth stocks with persistent accelerating earnings and sales growth, reasonable valuations and low debt.
MICROSOFT CORP (MSFT) is a large-cap growth stock in the Software & Programming industry. The rating according to our strategy based on Martin Zweig is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Companys segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of MICROSOFT CORP
TAIWAN SEMICNDCTR MNUFCTRNG CO LTD (ADR) (TSM) is a large-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Martin Zweig is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based company mainly engaged in the provision of integrated circuit manufacturing services. The integrated circuit manufacturing services include process technology, special process technology, design ecosystem support, mask technology, 3DFabricTM advanced packaging and silicon stacking technology services. The Company has completed the transfer and mass production of 5nm technology, and is engaged in the research and development of 3nm process technology and 2nm process technology. The product application range covers the entire electronic application industry, including personal computers and peripheral products, information application products, wired and wireless communication system products, servers and data centers.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of TAIWAN SEMICNDCTR MNUFCTRNG CO LTD (ADR)
LAM RESEARCH CORP (LRCX) is a large-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Martin Zweig is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Lam Research Corporation is a global supplier of wafer fabrication equipment and services to the semiconductor industry. The Company designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. Its products and services are designed to help its customers build devices that are used in a variety of electronic products, including mobile phones, personal computers, servers, wearables, automotive vehicles, and data storage devices. Its product families include ALTUS, SABRE, SPEED, Striker, VECTOR, Flex, Vantex, Kiyo, Versys Metal, Syndion, Coronus, and DV-Prime, Da Vinci, EOS, and SP Series. Its customer base includes semiconductor memory, foundries, and integrated device manufacturers that make products such as non-volatile memory, dynamic random-access memory, and logic devices. It offers services in areas, such as nanoscale applications enablement, chemistry, plasma and fluidics, and others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of LAM RESEARCH CORP
ASML HOLDING NV (ADR) (ASML) is a large-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Martin Zweig is 69% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: ASML Holding N.V. is a holding company based in the Netherlands. The Company operates through its subsidiaries in the Netherlands, the United States, Italy, France, Germany, the United Kingdom, Ireland, Belgium, South Korea, Taiwan, Singapore, China, Hong Kong, Japan, Malaysia and Israel. The Company operates through one business segment which is engage in development, production, marketing, sales, upgrading and servicing of advanced semiconductor equipment systems, consisting of lithography, metrology and inspection systems. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems).
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of ASML HOLDING NV (ADR)
KAROOOOO LTD (KARO) is a small-cap growth stock in the Software & Programming industry. The rating according to our strategy based on Martin Zweig is 69% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Karooooo Ltd. is a Singapore-based company. The principal activities include the provision of real-time mobility data analytics solutions for smart transportation through its software-as-a-service (SaaS) platform, physical and electronic commerce vehicle buying and selling, and providing a technology platform focused on last-mile delivery. The Companys segments include Cartrack, Carzuka, and Karooooo Logistics. Cartrack offers an on-the-ground operational Internet of Things (IoT) SaaS cloud that optimizes transportation, operations, and workflow data. Carzuka is a physical and electronic commerce marketplace for vehicle buying and selling, allowing customers to source, buy, and sell vehicles. Karooooo Logistics provides a software application for managing last-mile delivery and general operational logistics. The Companys subsidiaries include Cartrack Holdings Proprietary Limited, Carzuka.com Pte Ltd, Karooooo Management Company Pte. Ltd., Karooooo Cartrack Limited, and others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of KAROOOOO LTD
About Martin Zweig: During the 15 years that it was monitored, Zweig's stock recommendation newsletter returned an average of 15.9 percent per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest. Zweig has managed both mutual and hedge funds during his career, and he's put the fortune he's compiled to some interesting uses. He has owned what Forbes reported was the most expensive apartment in New York, a $70 million penthouse that sits atop Manhattan's Pierre Hotel, and he is a collector of all sorts of pop culture and historical memorabilia -- among his purchases are the gun used by Clint Eastwood in "Dirty Harry", a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to those he'd seen at a nearby gas station while growing up in Cleveland, according to published reports.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Taiwan Semiconductor Manufacturing Company Ltd.

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