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.

Emerging-market (EM) economies today present a compelling alternative to developed markets, and recent data offers a fresh lens. Going by the International Monetary Fund’s (IMF) October 2025 update, emerging and developing economies are forecast to grow 4.2% in 2025. This is significantly higher than the 1.6% expected growth in real GDP for advanced economies.
The collective output of EM now accounts for 50.6% of global GDP in 2025 and 66.5% of global GDP growth in the past 10 years (World Economics).
This macro strength is reflected in equity markets. According to a 2025 analysis by J.P. Morgan Asset Management, 2025 marks the first year since 2020 in which emerging-market equities have outperformed developed-market equities, driven by improving economic conditions, a softer U.S. dollar and a global macro backdrop favorable to EMs.
Added to this, currently, emerging-market equities are trading at a significant valuation discount. According to RBC Global Asset Management, EM stocks are priced at roughly a 35% discount to developed-market equities on forward price-to-earnings metrics, the largest discount in the last 15 years. J.P. Morgan adds that improving earnings momentum across emerging markets in 2024 and 2025 strengthens the case for a potential valuation re-rating as profitability recovers.
Below, we have discussed three well-positioned EM stocks, such as ICICI Bank IBN in financial services, Taiwan Semiconductor TSM or TSMC in manufacturing and MercadoLibre MELI in e-commerce. These are seen as key beneficiaries of the structural tailwinds and are widely expected to enter 2026 with strong growth momentum.
Sectors in Focus
Easing monetary policies across several developing nations with lower global interest rates are creating easier financing conditions across many EMs, enabling banks to expand credit at healthier margins. As inflation moderates and currencies stabilize in key EM economies, lenders face reduced funding volatility and lower credit-risk pressure, which support stronger return on equity. This has already translated into rising loan demand from households and small businesses, particularly in regions where rate-cut cycles began earlier than in developed markets. Going by multiple sources from recent times, from 2024 till mid-2025, year-over-year bank credit growth in several emerging economies, including India, the Philippines, and Vietnam, rose in double digits as domestic credit expanded.
This apart, global supply-chain diversification is driving a measurable rise in manufacturing activity across emerging markets. India, for example, attracted $19.04 billion in manufacturing FDI in the 2024-25 fiscal, supported by government incentives and expanding industrial parks (India Briefing). Vietnam and Indonesia are also capturing new production as multinational firms shift operations out of single-country hubs. India’s electronics output illustrates this shift. Mobile phone exports surged to $20.5 billion in 2024, up from near zero in 2016.
Our Picks
ICICI Bank: Headquartered in Mumbai, India, ICICI Bank is making commendable progress in improving digital banking services for retail and corporate clients. The company has been striving to provide superior end-to-end seamless digital services, personalized solutions and value-added features to enable data-driven cross-sell and up-sell opportunities. The increasing adoption of the bank’s mobile banking app – iMobile Pay – is helping garner a solid market share. Apart from this, the company’s digital platform for businesses has witnessed tremendous growth in the past few quarters.
For fiscal 2027 (ending March 2027), this Zacks Rank #2 (Buy) stock is expected to report earnings growth of 13.9% on 13.1% revenue growth. Its long-term historical earnings growth of 32.2% significantly outperforms the industry’s 9.3% growth. Meanwhile, the stock’s forward 12-month price/earnings (P/E) ratio of 17.25 is far below the S&P 500’s 23.44.
Image Source: Zacks Investment Research
Taiwan Semiconductor: The company continues to dominate the semiconductor foundry space. TSMC is known for its advanced production capabilities and has already moved into 3nm production, with 2nm coming soon. Its large scale allows it to handle rising AI chip demand better than most competitors. The company has established itself as the preferred manufacturing partner for AI accelerators, including GPUs and custom silicon developed by major players like NVIDIA NVDA, Marvell Technology and Broadcom.
For 2026, this Zacks Rank #2 stock is expected to report earnings growth of 20.2% on 20.6% revenue growth. Its long-term expected earnings growth of 28.7% significantly outperforms the S&P 500’s 10.1% growth. Meanwhile, the stock’s forward 12-month price/earnings (P/E) ratio of 25.72 is below the sector’s 29.09.
Image Source: Zacks Investment Research
MercadoLibre: Buenos Aires, Argentina-based MercadoLibre's leadership across e-commerce and digital banking sectors gives it exposure to two of the region's fastest-growing secular themes, online retail and financial inclusion. Its balance of scale, technology and local execution position it to compound value through market expansion rather than price competition. The 39% revenue growth and 41% total payment volume expansion in the third quarter of 2025 reaffirm that demand remains early-cycle. With infrastructure and trust already built, MercadoLibre's addressable market continues to expand faster than its global peers.
In 2026, this Zacks Rank #3 (Hold) stock is expected to report earnings growth of 50.3% on 28.5% revenue growth. Its long-term expected earnings growth of 34.6% significantly outperforms the industry’s 18.1% growth. The stock’s forward 12-month price/sales (P/S) ratio of 2.75 is below the S&P 500’s 5.3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Zacks Naming Top 10 Stocks for 2026
Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.
From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5.
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Emerging Markets to Outperform: 3 Stocks for 2026 Growth & Value

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 $579.9 million dollar inflow -- that's a 1.5% increase week over week in outstanding units (from 100,541,874 to 102,091,874). Among the largest underlying components of SMH, in trading today Taiwan Semiconductor Manufacturing Co., Ltd. (Symbol: TSM) is down about 1.7%, ASML Holding NV (Symbol: ASML) is off about 0.5%, and Lam Research Corp (Symbol: LRCX) is lower by about 2.4%. 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 $375.59 as the 52 week high point — that compares with a last trade of $367.12. 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.
Also see:
Oversold Metals Stocks
RMMZ Dividend History
EVH Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SMH, TSM, ASML, LRCX: ETF Inflow Alert

Key Points
ASML's High‑NA EUV systems are essentially the only path to next‑generation chips, giving it unmatched pricing power and strategic importance.
To justify a trillion-dollar valuation, net income would need to rise to $19 billion, achievable if High‑NA adoption and margins scale.
Analysts are bullish, and timelines point to a possible 2034 to 2036 target, but execution, cycle risk, and geopolitical/export constraints are key caveats.
ASML Holdings (NASDAQ: ASML) is positioned in one of the most lucrative sectors in tech. The Dutch company has spent four decades developing its High-Numerical Aperture (NA) extreme ultraviolet (EUV) machines, which are used to produce the most powerful chips for data centers.
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TSMC's, Intel's, and Samsung's foundries use ASML's lithography systems to manufacture high-performance semiconductors. The machines work by vaporizing droplets of molten tin in a vacuum chamber by striking them with laser beams 50,000 times per second, turning the tip droplets into a superheated plasma that emits EUV light, which is used to print microscopic patterns onto silicon wafers. That's the kind of tech that investors love.
And with data center demand increasing day by day, ASML is well on its way to joining the trillion-dollar club.
How is ASML's stock performing?
As of Dec. 8, ASML trades around $1,100 per share. It's up 62% year to date, 58% over the last 52 weeks, and around 143% over the previous five years.
The stock trades at a price-to-earnings ratio of 36, slightly below the industry average of 40. Meanwhile, its price-to-sales ratio is around 10, a reasonable multiple for tech manufacturers.
But the best part of this growth story is still ahead.
What could propel ASML even higher?
The company's next-generation technology that uses High-NA EUV has the potential to propel ASML's valuation in excess of $1 trillion. These machines increase the numerical aperture from 0.33 to 0.55, allowing them to print even smaller and more complex patterns than the previous generation of EUV machines. And each system is said to cost a cool $380 million.
These High-NA systems allow chipmakers to produce powerful processors that cannot be manufactured any other way. Period.
In fact, ASML already dominates the EUV market. It supplies machines to major chipmakers such as Intel, Samsung, and TSMC. And the High-NA EUV systems are practically the only path forward for next-generation chips. Even China, with significant state investment, hasn't been able to replicate ASML's technology.
Justifying the entry to the $1 trillion club
There's an undeniable market demand for ASML's tech. However, reaching the $1 trillion mark requires fundamental justification. Otherwise, we're just hoping for runaway valuations.
Today, ASML's market cap is around $432 billion. The company pulled in about $31 billion in top-line revenue in 2024, with about $8.19 billion flowing to the bottom line.
In order for ASML to reach a trillion-dollar valuation, the company will need to grow its bottom line to nearly $19 billion (~131%). This is because, all things being equal, stocks often move in a similar direction to their earnings growth. That way, it reaches the $1 trillion mark with similar P/E and P/S ratios.
If ASML maintains its position in the EUV lithography, hitting $67 billion in revenue isn't unreasonable. If I'm right, the timeline should fall between 2034 and 2036, given that the semiconductor sector is growing at about 8% to 10% annually and ASML's High-NA EUV ramp-up is just beginning. And if the company can accelerate revenue and improve margins, the timeline shortens further.
What do the analysts think about ASML?
Wall Street sees an opportunity here; a consensus among 25 analysts rates ASML stock a strong buy with an average score of 4.56 out of 5, and the rating has been relatively stable over the past three months. I agree.
ASML controls the most critical equipment that enables advanced AI chips, and the industry has no choice but to adopt High-NA technology, as there are literally no alternatives. Combining those factors creates a clear path to much higher valuations.
Should you invest $1,000 in ASML right now?
Before you buy stock in ASML, 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 ASML 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 $521,550!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,133,904!*
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*Stock Advisor returns as of December 8, 2025
Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Intel, and Taiwan Semiconductor Manufacturing. 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.

Prediction: This AI Chipmaker Will Join the Trillion-Dollar Club

Key Points
TSMC’s financials are improving rapidly, driven by AI demand.
Increasing adoption of advanced nodes and advanced packaging has caused even customers’ customers to approach the company.
Expansion of chip on wafer on substrate packaging could prove to be a key growth catalyst.
Shares of Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) are up by roughly 54% in 2025 through Dec. 9. The company is experiencing exceptional demand for its cutting-edge process nodes and CoWoS (chip on wafer on substrate) packaging technology for manufacturing advanced chips for data centers, smartphones, and automobiles.
If you've paid off high-interest debt and have $1,000 not required for bills or contingencies or anything in the short term, then investing in this company can be a smart move now.
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A critical player in the global semiconductor ecosystem
TSMC's third-quarter fiscal 2025 earnings performance was impressive, fueled by the ongoing artificial intelligence (AI) boom. Revenue was up 40.8% year-over-year to $33.1 billion, while earnings per share rose 49.8% year-over-year to $2.91. The increasing demand for cutting-edge chips has driven advanced technologies (7-nanometer and below) to account for 74% of wafer revenue at the company. The company's 3-nanometer node alone accounted for 23% of the company's revenue, highlighting the increasing adoption of cutting-edge chips.
Management claimed that the AI-driven demand is so strong that its customers' customers are approaching it for foundry capacity. The explosive surge in token volumes, a metric that gauges the computational capacity required for AI training and inference workloads, is further driving demand for high-performance, energy-efficient chips.
TSMC is well-positioned to leverage this opportunity, given its technology roadmap. The company is also rapidly building advanced nodes and expanding advanced packaging capacity in the U.S., Japan, Germany, and Taiwan.
CoWoS packaging technology, used to integrate logic silicon with high-bandwidth memory in AI accelerators, is also severely supply constrained. However, analysts at Bernstein expect this bottleneck to prove a competitive advantage for TSMC, forecasting that its CoWoS capacity will reach 125,000 wafers per month by the end of 2026. This expansion, combined with contributions from outsourced semiconductor assembly and test providers, is expected to increase TSMC's capacity to 1.25 million wafers per year by 2026.
With robust profitability despite high capital expenditures, I think TSMC will prove to be a smart bet in December 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 $521,550!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,133,904!*
Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 194% 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 December 8, 2025
Manali Pradhan, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. 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 Smartest Tech Stock to Buy With $1,000 Right Now

Key Points
Despite increased competition, Nvidia remains the leader in AI chips.
TSMC will continue to benefit from the AI infrastructure boom.
Both stocks are attractively valued.
As 2025 winds down, leading tech stocks once again helped lead the market higher by double-digit percentages. Continued strong momentum in the sector should continue through December and into 2026, making now a good time to look at two tech stocks to see if they are worth buying before the end of the year.
Nvidia
While Nvidia (NASDAQ: NVDA) is starting to face increased competition, it is still the king of artificial intelligence (AI) infrastructure. The company's graphics processing units (GPUs) are the prime chips used to power AI workloads, and the company has over 90% market share in the GPU data center space.
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The biggest challenge to Nvidia is coming from custom AI ASICs (application-specific integrated circuits), which are pre-programmed chips that are hardwired to perform specific tasks. Because the chips are designed for a sole purpose, this makes them more energy efficient. However, they lack the flexibility of GPUs, which are adaptable and can operate within various AI frameworks. While Alphabet's tensor processing units (TPUs) have gotten a lot of praise, these custom ASICs are specifically designed to run within Google Cloud and its TensorFlow framework.
ASICs are also custom chips, so each company needs to design its own, which means upfront costs are high and it takes time to develop them. Companies also need to secure advanced packaging from semiconductor manufacturers, like Taiwan Semiconductor Manufacturing (NYSE: TSM), which are largely booked up by companies like Nvidia and Apple. This makes scaling advanced ASICS difficult, given the capacity constraints the industry is facing. Nvidia's GPUs, meanwhile, are relatively readily available at scale, and the company works closely with TSMC to help secure future supply to meet increasing demand.
As such, Nvidia is still the company best positioned to benefit from the ongoing AI infrastructure boom. The company has a nice moat, as most foundational AI code has been written on its CUDA software platform and optimized for its chips. With Nvidia predicting data center capital expenditures could hit $4 trillion by 2030, it's poised to capture more than its fair share of this spending.
The stock is also attractively priced, trading at a forward price-to-earnings (P/E) ratio of under 24.5 times 2026 analyst estimates and a price/earnings-to-growth (PEG) ratio below 0.7 times (with below 1 times considered undervalued).
Taiwan Semiconductor Manufacturing
Another great stock to own heading into next year is Taiwan Semiconductor Manufacturing. The company is the largest semiconductor contract manufacturer in the world, and the leading maker of advanced chips. It is part of an oligopoly in advanced chip manufacturing with Samsung and Intel, and it's greatly benefiting from its rivals' struggles.
For chip technology to advance, chips need to become denser, meaning more transistors need to be squeezed onto a chip. This is referred to as shrinking node sizes in the chip industry, and TSMC is the only foundry that has been able to consistently produce chips at small node sizes with low defect rates at scale. Last quarter, 60% of its revenue came from chip technology at 5nm nodes or below. This has made it a key partner to chip designers, such as Nvidia, with whom it works closely on future chip designs and to increase capacity to meet growing demand.
Given the AI infrastructure boom, TSMC is aggressively building new fabs (chip manufacturing facilities) to expand capacity. With capacity tight, it also has strong pricing power, and it is expected to raise prices next year. Meanwhile, the company is set to soon introduce its newest 2nm node technology, which is projected to cost 50% more than its 3nm processing technology. The combination of increasing capacity and pricing should lead to continued strong growth for TSMC moving forward.
Meanwhile, the stock is also still attractively valued, trading at a forward P/E of 24 times. Given its growth outlook, this makes the stock a solid buy at today's levels.
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 $521,550!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,133,904!*
Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 194% 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 December 8, 2025
Geoffrey Seiler has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Apple, Nvidia, and Taiwan Semiconductor Manufacturing. 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.

2 Leading Tech Stocks to Buy Before the End of 2025

Key Points
Alphabet has many tech-driven businesses and a vast moat in its search engine traffic.
Nu is adding new locations to its platform.
Taiwan Semiconductor makes the chips that drive nearly every kind of technology.
With less than three weeks left in the year, the S&P 500 is thriving, up nearly 17%. Will it be able to manage a fourth year of double-digit gains in 2026? There's no way to know. What investors should be focused on instead is making sure their portfolios are well diversified with growth stocks to benefit from strong gains and solid value stocks to fortify their positions if there's market volatility.
With that in mind, Alphabet (NASDAQ: GOOG), Nu Holdings (NYSE: NU), and Taiwan Semiconductor (NYSE: TSM) are three stocks that offer strong growth opportunities in 2026 and beyond.
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1. Alphabet: Multiple businesses, including AI
Alphabet is a lot more than the Google search engine today. It has a varied list of products and services that are driving growth for the company, and it has tailwinds in artificial intelligence (AI) development. Although it trades at a premium to the S&P 500 average and its own recent averages, it's still fairly cheap for a growth stock, trading at a P/E ratio of 32.
Although the company is more than a search engine, Google Search is by far the most-used internet search engine, with around 90% of the market. That gives the company a tremendous edge in a space used by millions of users daily. Alphabet has developed the powerful Gemini large-language model (LLM) to generate valuable content for searchers, and it also provides Gemini, along with many other generative AI tools, to its cloud services clients. Although Google Cloud comes in at No. 3 in global cloud services behind Amazon's AWS and Microsoft's Azure, it's growing on par with Microsoft and faster than AWS on a percentage basis.
Alphabet has many more segments, including hardware like phones and autonomous vehicles. These are the kinds of varied business streams Warren Buffett loves, and Buffett's holdings company, Berkshire Hathaway, took a position in Alphabet in the third quarter. AI or not, Alphabet has a stable and growing business that can keep growing in 2026 and the long term.
2. Nu: Expanding into new regions
Nu is a former Buffett stock, and it continues to be an incredible investment for shareholders today, up 61% in 2025.
The company, which operates an all-digital financial services business, has loads of tailwinds, and it's an exciting time to be a part of the story. Right now, it serves more than 60% of the population in its headquarters in Brazil, but management thinks there's still tons of potential in monetizing this base through cross-selling and upselling. It's also just getting started in Mexico and Colombia, which, with Brazil, make up the three largest countries in Latin America. That leaves a long-term growth runway as it captures more of the population and monetizes them down the line, a la the trajectory in Brazil.
But it also has major ambitions in opening up in new geographic locations, including the U.S. Like Alphabet, it trades at only 32 times trailing-12-month earnings, which is a great price considering its growth and long-term prospects. Look for Nu to keep launching new products in new places in 2026 and for its stock to reflect its growth.
3. Taiwan Semiconductor: Powering all kinds of technology
Taiwan Semiconductor is a fabulous stock for almost any investor, offering tremendous growth prospects and a solid, established model that can benefit from diverse trends. It manufactures semiconductors designed by companies like Nvidia and Alphabet, and it's enjoying robust AI tailwinds, but it also makes the chips that power smartphones, autonomous vehicles, and other technologies. That protects its business in the event that one technology type is overtaken by something new. In fact, it's likely to benefit from any new type of technology, so it's well positioned to keep churning out strong growth, whatever happens with AI.
It's also extremely profitable, with a 50.6% operating margin in the third quarter of 2025 and a 39% increase in earnings per share (EPS).
Like the other stocks on this list, Taiwan Semiconductor stock isn't expensive; it's actually the cheapest of the three, with a P/E ratio of 30. That gives the stock even more room to run next year.
Should you invest $1,000 in Alphabet right now?
Before you buy stock in Alphabet, 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 Alphabet 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 $521,550!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,133,904!*
Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 194% 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 December 8, 2025
Jennifer Saibil has positions in Nu Holdings and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Berkshire Hathaway, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Nu Holdings. 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.

These Could Be 3 of the Best Stocks to Own in 2026

Key Points
Broadcom is codesigning custom artificial intelligence (AI) chips for Alphabet's Google Cloud, and Microsoft might be next in line for a similar partnership.
Wall Street expects Broadcom's revenue growth to accelerate to 36% by fiscal 2027, justifying today's premium valuation.
The stock comes with serious volatility and risks.
While many tech giants are taking a breather, Broadcom (NASDAQ: AVGO) just posted its best month in an already spectacular year. Simply put, Broadcom has been crushing the market for years, and somehow it's still accelerating.
Where is the chip and software giant going next -- and is it too late to benefit from this stellar growth stock?
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Broadcom's incredible returns
Let's start with Broadcom's multiyear returns. The company hasn't quite kept up with artificial intelligence (AI) chip king Nvidia (NASDAQ: NVDA) in the last three years, but it earned a seat in the trillion-dollar market cap club with some fantastic returns. It ain't easy to double your stock price three years in a row:
So Broadcom's growth stock credentials are crystal clear. But the growth story intensified more recently. Broadcom's stock more than quadrupled Nvidia's market-beating (and market-defining!) returns over the last 52 weeks (as of this writing on Dec. 8):
How Broadcom got here
Nvidia is far from the only maker of high-powered AI accelerator chips. Many alternative AI chip designers have partnered up with Broadcom.
For example, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) runs its own large language models (LLMs) on a proprietary design called Tensor Processing Units (TPUs). Alphabet's Google Cloud team has enough chip-designing expertise to design AI accelerators that meet the company's specific performance requirements. Broadcom steps in with the SerDes system interconnect technology and decades of experience with chip packaging. The final design is sent to manufacturing specialists such as Taiwan Semiconductor (NYSE: TSM) or Samsung (OTC: SSNL.F), who turn the plans into physical chips.
Alphabet is reportedly selling TPUs to Meta Platforms these days, making the Facebook and Instagram parent an indirect Broadcom customer. And in a hot-off-the-presses moment, Broadcom is talking to Microsoft about an Alphabet-style AI processor collaboration.
These partnerships have hurled Broadcom's top-line sales growth into a new orbit:
Can Broadcom's stock keep rising?
I can come up with both bullish and bearish chapters for Broadcom's upcoming market action.
In a perfect world (for Broadcom investors, that is), Broadcom sticks to the first-place position in everybody else's "black book" of Nvidia alternatives.
This position of leadership is in line with the default projection in current Wall Street estimates. Broadcom's trailing sales of $59.9 billion represent a 28% increase year over year. The average analyst firm expects a 23% revenue jump in the next fiscal year, followed by a 36% increase in fiscal 2027. That's not just keeping the pedal to the metal -- it's a whiplash-inducing acceleration.
The stock is likely to keep soaring if the analyst community turns out to be right.
Broadcom's stock is pricey today, trading at 100 times trailing earnings (P/E) and 31 times sales (P/S). That's about twice Nvidia's valuation ratios in both cases. But if you include the Street's five-year growth targets, Nvidia looks reasonably valued with a PEG ratio of 1.0, while Broadcom looks cheap at 0.6.
Anyone who claims to know what will happen in five years is trying to sell you something, and the warranty on that gadget will probably expire in four years.
Many things could go wrong before the year 2030. Broadcom's much-vaunted clients and partners could eventually go it alone, removing Broadcom's billions of AI dollars from their chip-production costs. And what if Nvidia turns the tables on Broadcom, pushing out SerDes with its NVLink and InfiniBand interconnect technologies?
And of course, no company is immune to missteps and the occasional poor decision. It doesn't take many of those to send stock prices crashing down from a triple-digit P/E ratio and $1.9 trillion market cap.
It's windy up there in Wall Street's stratosphere.
Is Broadcom still a buy for 2026?
Broadcom has been crushing the market for years, and the data suggests it's not done yet. While the easy money has been made, the company's position as the Switzerland of the AI chip wars -- neutral, essential, and profitable no matter who wins -- makes it a compelling growth story even at these heights.
Just don't expect a smooth ride; at these valuations and with several potential threats lurking around the corner, crushing the market comes with plenty of white-knuckle moments.
Should you invest $1,000 in Broadcom right now?
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Anders Bylund has positions in Alphabet and Nvidia. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, Microsoft, Nvidia, 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.

This Growth Stock Continues to Crush the Market

Key Points
The equities fund sold 84,795 shares of Eagle Materials, a net position change of $19.1 million.
The position previously accounted for 4.7% of the fund’s AUM in the prior quarter.
Eagle Materials stock has fallen by over 30% over the past year.
What happened
On Nov. 14, 2025, L1 Capital International, an Australia-based fund specializing in high-conviction international equities, disclosed in an SEC filing that it had sold its entire $19.1 million stake in Eagle Materials (NYSE:EXP).
L1 Capital International sold its entire holding of 84,795 shares in Eagle Materials during the third quarter. The transaction was valued at $19,092,442 based on quarterly average pricing.
What else to know
At the end of the second quarter, Eagle Materials constituted 4.7% of L1 Capital's 13F assets.
Top holdings after the filing:
Taiwan Semiconductor Manufacturing: $75.28 million (15.7% of AUM)
Microsoft: $42.01 million (8.8% of AUM)
AerCap Holdings: $41.60 million (8.7% of AUM)
Amazon.com: AMZN: $36.15 million (7.5% of AUM)
CRH Plc.: $32.27 million (6.7% of AUM)
As of Nov. 14, 2025, Eagle Materials shares were priced at $202.06, down 33.6% over the past year, underperforming the S&P 500 by 46.7 percentage points.
Company overview
Market capitalization
$6.63 billion
Revenue (TTM)
$2.30 billion
Net income (TTM)
$446.80 million
Price (as of market close Nov. 14, 2025)
$202.06
Company snapshot
Eagle Materials is a leading U.S. supplier of essential construction materials, with a diversified portfolio spanning cement, aggregates, wallboard, and recycled paperboard.
The company produces and supplies cement, concrete, aggregates, gypsum wallboard, and recycled paperboard for construction and building materials markets. Primary customers include construction contractors, public infrastructure developers, and manufacturers in the building materials sector across the United States.
The company leverages vertical integration and regional scale to serve a broad base of customers in residential, commercial, and public infrastructure markets.
Foolish take
Eagle Materials hasn't been the market's favorite for some time. The company has lost a third of its market value over the last 12 months, thanks to a soft housing and construction market.
After registering strong revenue growth in the mid-teens from fiscal year (FY) 2021 to FY 2023, the U.S. housing market began softening in 2024. As a result, revenue growth fell to 5% for FY 2024 (ended March 31, 2024), followed by zero growth in FY 2025, and this trend has continued.
The company missed earnings estimates for the second quarter of FY 2026 (ended Sept. 30, 2025) as wallboard volumes -- one of its core businesses -- declined 5% in the first half of FY 2026 due to softening demand from the residential construction business.
Mortgage interest rates remain elevated, which will continue to drive concerns about housing affordability. Management admits the road ahead for residential construction activity and mortgage rates remains unclear.
The good news is that Eagle's non-residential segments have witnessed solid growth, driven by government support for public infrastructure projects and increased spending levels in private non-residential end markets.
The stock currently trades at 16.3 times its trailing 12-month earnings and a price-to-sales ratio of 3.2, both of which fall within its five-year ranges. In short, Eagle Materials is fundamentally a solid business. The 33% decline over the past year appears to be overdone.
While the near term remains uncertain, this stock could prove to be a hidden gem for investors with a 5 to 10-year investment horizon. The housing market is inherently cyclical. When mortgage rates decline and new house construction activity picks up, this stock could soar.
Glossary
13F portfolio: The collection of U.S. equity holdings that institutional investment managers must report quarterly to the Securities and Exchange Commission (SEC).
Assets under management (AUM): The total market value of investments managed by a fund or firm on behalf of clients.
Net position change: The difference in the value of a holding before and after a transaction, reflecting buying or selling activity.
Quarterly average pricing: The average price of a security over a specific quarter, used to estimate transaction values.
Vertical integration: A business strategy where a company controls multiple stages of its supply chain, from production to distribution.
Reportable assets: Investments that must be disclosed in regulatory filings, such as those required by the SEC for large managers.
Stake: The ownership interest or investment a fund or individual holds in a particular company.
Filing: An official document submitted to a regulatory authority, often detailing financial or ownership information.
Exposure: The degree to which a portfolio or fund is affected by changes in the value of a particular asset or sector.
TTM: The 12-month period ending with the most recent quarterly report.
Market close: The end of the regular trading session for a stock exchange on a given day.
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Isac Simon has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends AerCap and Eagle Materials and recommends the following options: long January 2026 $395 calls on Microsoft, long January 2027 $60 calls on AerCap, 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.

L1 Capital International Dumps 85K Eagle Materials Shares Worth $19.1 Million

Taiwan Semiconductor Manufacturing Company TSM, also known as TSMC, continues to report healthy profitability even as it builds new fabs outside Taiwan. The contract chipmaker is building new fabs across the United States, Japan and Germany.
The move will help the company meet the growing demand for artificial intelligence (AI) and advanced computing chips. The strategy will also aid TSMC in building a diversified semiconductor supply chain and hedge against geopolitical tensions that could disrupt its supply chain.
However, overseas fabs are more expensive to operate. Taiwan Semiconductor is estimating a near-term margin dilution of around 2%, which could further expand to 3-4% as production scales. Despite these pressures, TSMC’s gross margin rose 170 basis points year over year to 59.5% in the third quarter of 2025, showing its ability to absorb rising costs while sustaining profitability.
For the fourth quarter, management expects gross margin between 59% and 61%. The midpoint of the guidance range depicts a year-over-year improvement of 100 basis points. Taiwan Semiconductor is betting that scale, automation and government incentives will eventually close the cost gap. The company believes that the investment will pay off as global customers seek reliable, regionally diversified suppliers for advanced nodes like 2nm and A16.
Taiwan Semiconductor’s revenues grew 40.8% year over year to $33.1 billion in the third quarter. Analysts believe the momentum will continue in the years ahead, considering the company’s global expansion strategy and the rising demand for AI and advanced computing chips. The Zacks Consensus Estimate for 2025 and 2026 revenues indicates year-over-year growth of 33.7% and 20.6%, respectively.
TSMC’s Rivals in the AI Chip Making Race
Intel INTC and GlobalFoundries GFS are also expanding 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 54.1% year to date compared with the Zacks Computer and Technology sector’s gain of 28.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, TSM trades at a forward price-to-earnings ratio of 25.06, lower than the sector’s average of 29.03.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Taiwan Semiconductor’s 2025 and 2026 earnings implies a year-over-year increase of 43.9% and 20.2%, respectively. Estimates for 2025 and 2026 have been revised downward in the past 30 days.
Image Source: Zacks Investment Research
Taiwan Semiconductor currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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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.

Can TSM Sustain Gross Margin Improvement Amid Overseas Expansion?

Key Points
Shares of Intel exploded higher in 2025 as a new CEO put the company on a better path.
Costs have been reduced, and interest in Intel's foundry services has increased.
Intel stock could have another strong year ahead in 2026.
Going into 2025, Intel (NASDAQ: INTC) was in serious trouble. Rudderless after the surprise departure of former CEO Pat Gelsinger, Intel was losing market share to rival Advanced Micro Devices and struggling to pitch its foundry services business to potential customers.
While Intel isn't out of the woods just yet, investor sentiment has done a dramatic 180-degree turn. Intel stock has more than doubled so far in 2025, and that rally could continue into 2026 as the company's turnaround takes shape.
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A new CEO and a rash of deals
Intel appointed former board member and semiconductor industry veteran Lip-Bu Tan as CEO in March. Tan took some painful steps right away, including significant layoffs to bring Intel's cost structure down to earth. He also scrapped some planned foundry investments while tying continued investments in the upcoming Intel 14A node to confirmed customer commitments. "No more blank checks," as Tan put it.
Along with getting Intel's financial house in order on the cost side, Tan struck multiple deals to raise much-needed cash. The U.S. Government took a nearly 10% stake in Intel, converting CHIPS Act grant money that hadn't yet been doled out into equity. Softbank invested another $2 billion, and Nvidia invested $5 billion in a deal that will also produce PC and server CPUs that combine Intel and Nvidia technology.
Intel ended the third quarter with more than $30 billion in cash and short-term investments on its balance sheet.
The foundry is picking up steam
The Intel 18A process node, the final node in Intel's original five-nodes-in-four-years plan, is ready for production. Panther Lake, the company's next-generation laptop chip built on Intel 18A, will begin shipping by the end of the year, with volume shipments following in 2026. Clearwater Forest, one of Intel's upcoming server CPU families that will utilize Intel 18A, is also expected to arrive in 2026.
While the Intel 18A process will get plenty of volume from Intel's own products, the company has struggled to sell the process to outside customers. That story started to change in the final months of 2025. In October, reports emerged that Microsoft would tap the Intel 18A process for its next-generation AI processor. The two companies had previously announced a manufacturing partnership in 2024, but few details were given.
In late November, an analyst posited that Apple was likely to choose the Intel 18A-P process for its low-end M-series chips. If a deal materializes, Intel could produce between 15 million and 20 million Apple chips annually. Additional analyst commentary suggests that Intel could also be in the running to produce some non-Pro iPhone chips on the Intel 14A process starting in 2028.
While nothing has been confirmed, Apple looking to diversify its supply chain and lower its dependence on TSMC would make a lot of sense. If Intel does snag Apple as a foundry customer, it would represent a huge vote of confidence that would likely help bring in additional customers.
It's not too late to buy Intel stock
Despite Intel stock more than doubling this year, it's still well below its all-time high. While the foundry business won't start churning out any profits for at least a few years under the best-case scenario, the long-term opportunity is significant. Demand for AI chips has been booming, putting pressure on manufacturing and packaging capacity at foundry leader TSMC. Intel's cutting-edge 18A and 14A processes are coming at just the right time to take advantage.
Intel's new manufacturing processes will also help the company become more competitive in its core PC and server CPU markets, where it has been shedding market share for years.
It will take time for Intel's turnaround to translate into sustainable revenue and profit growth, but as market sentiment shifts in a positive direction, the stock could be in for another major rally in 2026.
Should you invest $1,000 in Intel right now?
Before you buy stock in Intel, 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 Intel 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 $540,587!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,118,210!*
Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 195% 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 December 8, 2025
Timothy Green has positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Intel, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool 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.

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