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.

TSM остаётся фундаментально сильной компанией, но текущая оценка уже заметно опережает отрасль по большинству мультипликаторов. P/E на уровне 37.97 лишь немного выше медианы сектора, однако P/S 12.65, P/B 12.21 и P/FCF 67.55 выглядят очень дорогими и указывают на высокие ожидания рынка. При этом качество бизнеса действительно высокое: ROE 34.35%, ROA 22.95% и ROI 28.78% существенно выше отраслевых ориентиров, а маржа чистой прибыли 44.57% и операционная маржа 49.59% подтверждают исключительную эффективность. Важный плюс — устойчивое улучшение почти всех показателей по годам: растут выручка, валовая прибыль, EBITDA, чистая прибыль и капитал, что говорит о сильном операционном импульсе. Ликвидность комфортная: current ratio 2.51 и quick ratio 2.47, а debt/equity 0.17 остаётся низким и снижается, что уменьшает финансовые риски. Долгосрочный долг сам по себе не выглядит критичным на фоне огромного денежного потока и высокой рентабельности, хотя абсолютный уровень обязательств требует внимания. Дивидендная доходность низкая и по последним данным фактически не поддерживает инвестиционный кейс через доходность, поэтому этот фактор нейтрален. Сильная сторона TSM — сочетание роста, высокой маржинальности и очень крепкого баланса, что редко встречается в полупроводниковой отрасли. Слабая сторона — цена уже учитывает значительную часть этих преимуществ, поэтому потенциал переоценки ограничен. В такой конфигурации справедливо сохранять осторожность и слегка понизить целевой ориентир, чтобы учесть премию к отрасли по продажам, балансовой стоимости и свободному денежному потоку. Для инвестора это по-прежнему качественный долгосрочный актив, но вход по текущим уровням выглядит менее привлекательным, чем фундаментальная история компании.

Taiwan Semiconductor Manufacturing Company Ltd.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, значительно упал. Уверенность медведей остается на низком уровне.

Weak index, significantly down. Bearish confidence remains low.

Средний индекс, значительно вырос. Рынок не поддерживает быков.

Medium index, significantly up. The market does not support the bulls.

Сильный индекс, незначительно упал. Рынок на стороне медведей.

Strong index, slightly down. The market is on the bears' side.

Средний индекс, незначительно упал. Приток средств в лонги снизился, но остается положительным.

Medium index, slightly down. The inflow of funds into longs has decreased, but remains positive.

Сильный индекс, незначительно вырос. Отток средств из шортов на высоком уровне.

Strong index, slightly up. Outflow of funds from shorts at a high level.

TSM демонстрирует выдающуюся рентабельность и рост при сильном балансе, но оценка по P/S, P/B и P/FCF уже очень высокая, поэтому целевой ориентир слегка снижен.

Key Points
TSMC will continue to benefit no matter who is in the AI lead.
Alphabet's Gemini is already a fierce AI competitor.
Nvidia still dominates AI processors, and more growth opportunities could be around the corner.
Artificial intelligence (AI) stocks have been volatile this year, with some companies posting big gains, followed by a recent sell-off in many semiconductor stocks.
But three companies that are still outperforming the S&P 500 year to date are Taiwan Semiconductor Manufacturing (NYSE: TSM), Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), and Nvidia (NASDAQ: NVDA).
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
And there are some good reasons to believe that these three AI stocks could remain solid long-term winners. Here's why.
TSMC wins no matter who leads the AI race
Taiwan Semiconductor Manufacturing, widely known as TSMC, is the world's leading semiconductor manufacturer, making about 70% of all processors and nearly 90% of all advanced processors. Essentially, if a large tech company needs AI processors made, it's going to hire TSMC.
That's been a huge boon to the company's chip manufacturing business over the past few years (sales rose 32% in 2025 to $121 billion), and there could be more growth on the way as tech giants boost demand for AI processors. The company estimates that by 2030, the global chip market will be worth $1.5 trillion, with AI processors leading the demand.
One of the unique angles TSMC has in AI is that it benefits from all of the AI processor demand, regardless of who is leading the race. Whether OpenAI, Anthropic, Meta Platforms, Alphabet, or some new AI start-up buys up piles of AI processors, they'll likely be placing their orders through TSMC.
Alphabet's AI ubiquity is already hard to ignore
Alphabet is taking a leading role in AI through its fast-growing Gemini AI model. The company has grown its user base by more than double over the past year to more than 900 million users.
While Gemini may not be as popular as OpenAI's ChatGPT and Anthropic's Claude, I don't think Alphabet has to have the dominant model to benefit from AI. Consider that Alphabet already attributed the 63% growth in Google Cloud sales (reaching $20 billion) in the first quarter to its expanding AI services.
What's more, Gemini is now implemented across many of Alphabet's services, including YouTube, advertising, Search, Google Workspace, and more. With such a massive reach among its large user base, Alphabet can play the long game with AI and slowly raise prices or introduce new tiers with more AI features to boost revenue.
And investors are already seeing Gemini directly make money for Alphabet. Apple is using Gemini as a core part of its AI model for the new version of Siri and will pay Alphabet a reported $1 billion annually to use it.
Nvidia will likely remain king of AI processors for years
After years of being at the top of many AI investors' buy lists, it may seem odd to continue beating the buy Nvidia drum. But even amid rising competition, Nvidia remains the leading AI processor company. Nvidia has about 86% of the AI data center revenue market share, leaving rival AMD with just 7%.
And Nvidia's sales and earnings continue to impress. Revenue rose 85% in the most recent quarter to nearly $82 billion, and diluted non-GAAP (generally accepted accounting principles) earnings popped 140% to $1.87 per share.
Nvidia's shares are also relatively inexpensive compared to many other AI stocks. Nvidia stock has a price-to-earnings (P/E) ratio of about 30 right now, compared to 150 for AMD and 62 for Broadcom.
What's more, I think there could be higher demand for Nvidia's processors in the near future as robotics and autonomy industries take off. Nvidia believes there could be millions of humanoid robots in the coming decades that will need high-end processors, and RBC analyst Toom Narayan believes the robotics industry could be worth $9 trillion by 2050.
When you add it all up, Nvidia still looks like a great long-term AI play.
Should you buy stock in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $433,268!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,259,391!*
Now, it’s worth noting Stock Advisor’s total average return is 935% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 14, 2026.
Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Broadcom, Meta Platforms, 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.

3 AI Stocks Poised for Long-Term Gains Despite Strong Year-to-Date Performance

Key Points
Alphabet will be both a big AI infrastructure spender and winner.
TSMC is set to benefit from both increased AI capex and more types of chips going into data centers.
ASML is the company that makes AI possible with its EUV machines.
Goldman Sachs recently predicted that artificial intelligence (AI) infrastructure spending could climb to between $920 billion and $1.4 trillion next year, up from the more than $700 billion expected to be spent this year. Those are some huge numbers, and there undoubtedly will be some nice winners in the space.
Let's look at three under-the-radar AI stock winners set to benefit from this surge in data center capital expenditures (capex).
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
1. Alphabet
Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is set to be both one of the big spenders and winners when it comes to AI infrastructure spending. The company plans to spend between $180 billion and $190 billion this year, with a significant increase in 2027. However, if there is any company that should be pushing up its capex spending, it's Alphabet.
The reason is that the company currently has a significant cost advantage with its tensor processing units (TPUs). By being less reliant on Nvidia's graphics processing units (GPUs) than its competitors, it is getting more bang for its buck with its AI infrastructure spending. This lets it train its Gemini model at significantly lower cost than peers and also save huge costs on inference. In many cases, this can also help provide it with a better return with Google Cloud, which is growing rapidly.
Alphabet's TPUs have become so well regarded that it is now allowing select customers, such as Anthropic, to place orders directly with co-developer partner Broadcom. This adds another high-margin revenue stream for Alphabet. Between this and its TPU cost advantage, this is a stock set to win from surging data center capex.
2. Taiwan Semiconductor Manufacturing
AI chip spending is now not only going up, but it is also widening. That's great news for Taiwan Semiconductor Manufacturing (NYSE: TSM). Whether the spending is going to GPUs, custom application-specific integrated circuits (ASICs) like Alphabet's TPUs, or high-performance central processing units (CPUs), this all benefits TSMC, which has a virtual monopoly in the manufacturing of advanced logic chips.
While chip designers will inevitably look to second source their manufacturing base if possible, right now they are beholden to TSMC, as it is the only foundry that has both the scale and expertise to produce advanced logic chips in mass quantities with high yields (few defects). This has made the company an integral partner with leading chip designers, who must turn to TSMC not only for help securing capacity but also for planning their entire chip roadmaps. As more chip companies fight to secure fab capacity, this benefits TSMC, which has already shown it has strong pricing power. Recent reports indicate the company will raise prices on its newer 3nm chips by 15% later this year.
This all makes TSMC one of the best stocks to own as spending on AI infrastructure continues to ramp.
3. ASML
While TSMC manufactures advanced logic chips, ASML (NASDAQ: ASML) provides the machines that make this possible. In fact, without its technology, there would be no AI infrastructure boom, as it is the only company in the world with extreme ultraviolet (EUV) lithography technology.
EUV machines are what make GPUs and other advanced chips possible, making ASML one of the most important companies, even though it is not a household name.
In addition to being needed in the manufacturing of advanced logic chips, these machines are also used to make high bandwidth memory (HBM), while its older DUV machines can also be used in the memory-making process. Its EUV machines cost upwards of $200 million, so these are pricey pieces of equipment, and the company is seeing robust demand from both foundries like TSMC and the big memory makers.
As AI capex continues to climb, ASML is a great under-the-radar stock to own.
Should you buy stock 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 $433,268!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,259,391!*
Now, it’s worth noting Stock Advisor’s total average return is 935% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 14, 2026.
Geoffrey Seiler has positions in Alphabet. The Motley Fool has positions in and recommends ASML, Alphabet, Goldman Sachs Group, 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.

3 Under-the-Radar Ways to Play Goldman's $1 Trillion AI Spending 2027 Forecast

Key Points
The newsflow around the SpaceX IPO was intense, given its size and Elon Musk's involvement.
The company is a leader in the space industry, but also has exposure to AI and telecommunications.
The size of SpaceX in and of itself isn't exactly an issue, but there are factors to consider before you buy it and for the market as a whole.
After all the buildup, the SpaceX (NASDAQ: SPCX) initial public offering (IPO) was perhaps a bit of a letdown. That's not necessarily because of the stock's performance, which was notable, but because the months of lead-up ended in an event that was completed in, basically, a day. It was sort of like waiting an hour for a roller coaster ride that only lasts three minutes.
Now that SpaceX is public, however, investors need to consider what it means. And one of the biggest issues is the company's massive size. With a $2.1 trillion market cap after just its first day of trading, it is already one of the world's largest companies. Here are a few things to think about if you own it, are considering buying it, or are just investing more broadly.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
How did the SpaceX IPO go?
For those who remember the dot-com bubble, the SpaceX IPO wasn't that impressive. Back at the turn of the century, it was common for IPOs to double in a day. SpaceX "only" saw a price increase of around 19%, with the IPO price set at $135 per share and the stock closing its first day at roughly $160.
From a functional perspective, the bankers who handled the IPO did a pretty good job pricing it. Still, by the end of the day, the company's market cap ballooned to $2.1 trillion. There are only six companies that are larger than SpaceX, and it is a pretty tight race with Taiwan Semiconductor (NYSE: TSM) for the sixth spot, as the chipmaker's market cap is $2.199 trillion.
The good news here is that the market absorbed the IPO in relative stride. That bodes well for the future, since there are more large IPOs on tap, including Anthropic and OpenAI.
The size of SpaceX has led to big index changes
That said, SpaceX's size, combined with the company's popularity, has led to interesting shifts in the world of indexes. While the S&P 500 index (SNPINDEX: ^GSPC) is holding to its inclusion rules, other indexes have made changes to quickly add SpaceX to their index lists. For example, the Nasdaq-100 will likely add SpaceX after around 15 days.
Being added to an index will lead index funds to buy the stock, creating additional demand for the shares. Inclusion in indexes will also create a base of investors who have no choice but to own the stock. The normal dynamics of a smaller IPO don't apply here, and, for the most part, the market is in uncharted waters. However, it seems reasonable to expect the shares to hold up, if not rise some more, at least in the near term. From a longer-term perspective, it seems reasonable to expect Anthropic and OpenAI to receive early index inclusions as well.
What about SpaceX as a business?
SpaceX is already a massive company, but it is also spending heavily on research and development because "space" is still an emerging technology. While SpaceX is currently a leader in the space industry, there's no guarantee it will remain there. And, perhaps equally important, remaining a leader will likely mean SpaceX remains a money-losing business for longer. And then there's the massive capital being spent on Grok, SpaceX's AI product. Once again, a huge investment is needed to compete in the AI sector. Red ink is likely to be the norm for quite a while.
While the company's Starlink business is highly profitable, it is merely subsidizing its investments in space exploration and artificial intelligence. And even that isn't enough, since the company clearly needed to raise additional capital by going public. Buying SpaceX today is a bet that Elon Musk's vision will, someday, lead to a profitable business. That belief worked out well with Tesla (NASDAQ: TSLA), but there's no guarantee of a repeat performance.
In fact, despite its massive size, SpaceX is really just a money-losing start-up. If you wouldn't be comfortable owning a smaller money-losing start-up, you should probably think twice about buying SpaceX. A $2.1 trillion market cap doesn't magically turn SpaceX into a "safe" investment.
SpaceX: Think before you take this leap of faith
Headline-grabbing events on Wall Street don't always work out as well as hoped over the long term. Right now, the excitement is high, but if SpaceX continues to bleed red ink, investor enthusiasm could quickly wane. For risk-averse investors, the best way to own SpaceX might be through a diversified index fund. More aggressive growth investors may want to jump aboard, but you'll probably want to think of the unprofitable company as a long-term holding.
Should you buy stock in Space Exploration Technologies right now?
Before you buy stock in Space Exploration Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Space Exploration Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $433,268!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,259,391!*
Now, it’s worth noting Stock Advisor’s total average return is 935% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 13, 2026.
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing and Tesla. 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.

SpaceX Is Worth $2.1 Trillion on Its First Day of Trading. Is That a Problem for Investors?

Key Points
Bank of America moved Intel straight from its most bearish rating to its most bullish, skipping the middle.
The thesis centers on AI shifting more spending toward central processors and chip manufacturing.
After more than tripling in 2026, the stock already reflects a lot of optimism.
Most analyst rating changes move a single notch. So when one of the more closely followed semiconductor analysts skips the middle rating and jumps two rungs at once, it's worth a closer look -- not necessarily as a reason to buy, but as a window into how the thinking around artificial intelligence (AI) spending may be changing.
That's what happened on June 11, when Bank of America's Vivek Arya double-upgraded Intel (NASDAQ: INTC) to buy from underperform, lifting his price target to $135 from $96. Banks tend to reserve a move like that for moments when the thesis they had been betting against breaks. And it came after Intel had already more than tripled in 2026 -- less a call on a forgotten stock than a bet that the turnaround has further to run.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Intel shares rose about 6% in the following session, closing near $125 as of this writing.
The more useful question isn't whether the target is right. It's what the upgrade says about the next phase of the AI trade.
The case for the CPU
For most of the AI boom, the story has been about graphics processing units (GPUs) -- the chips that train large models. Central processors, Intel's historical stronghold, were an afterthought. The upgrade rests on the idea that this is starting to change.
The argument goes like this: as companies build "agentic" systems in which software agents carry out tasks independently, incremental work shifts to the central processors to coordinate those agents.
If that shift plays out, the market for server processors will get much bigger. Indeed, Bank of America now pegs the market at more than $170 billion by 2030, up from a prior estimate of around $125 billion, and sees Intel capturing roughly a quarter of it.
Intel's own recent numbers lend the idea some support.
In the first quarter of 2026 (the period ended March 28, 2026), the company's data center and AI revenue rose 22% year over year to about $5.1 billion -- easily the fastest-growing of its three main segments, well ahead of the 1% growth in its client computing group, which sells PC chips.
And management is describing the central processor in much the same terms.
"In recent months, we have seen clear signs that the CPU is reasserting itself as the indispensable foundation of the AI era," said Intel CEO Lip-Bu Tan in the company's first-quarterearnings call
A risky foundry business
The second part of the upgrade is about manufacturing.
Intel is trying to become a more formidable contract chipmaker, producing chips for others the way Taiwan Semiconductor does -- a business it calls its foundry. This, however, is the higher-risk, higher-reward part of the story. Bank of America pointed to a pipeline of potential outside customers, including reported work on Apple's chips and MediaTek's processors. If even a few of those deals scale, the foundry could grow from a rounding error into a real second engine.
But Intel isn't there yet. Intel's external foundry revenue -- the part that comes from outside customers rather than its own products -- was just $174 million in the first quarter. And the foundry segment as a whole is still losing billions of dollars a year as Intel spends heavily to build out advanced manufacturing. And closing the gap with Taiwan Semiconductor is something Intel has tried and stumbled at before.
Then there's the price. Intel trades at well over 100 times its expected earnings for the next year. A valuation like this leaves little room for error, assuming both the agentic-processor shift and the foundry turnaround unfold with very few blips along the way.
So, what do I make of all this?
The rotation Bank of America is describing looks real and underappreciated -- the idea that AI's next phase pulls spending back toward the processors and manufacturing capacity Intel is built around. But a compelling thesis and an attractive entry price are different things. After more than tripling this year, the stock has arguably already priced in much of that optimism, and the bar it now has to clear is far higher than it was a few months ago. I'd want to see Intel's foundry business make more meaningful progress on its pipeline before treating the stock as a buy here. Sure, the shift may be coming. But the stock apparently isn't waiting around for proof.
Should you buy stock 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 $433,268!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,259,391!*
Now, it’s worth noting Stock Advisor’s total average return is 935% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 13, 2026.
Bank of America is an advertising partner of Motley Fool Money. Daniel Sparks and his clients have positions in Apple. The Motley Fool has positions in and recommends Apple, 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.

Intel Just Got a Rare Double Upgrade From Bank of America. Here's the AI Shift Behind the Call.

Key Points
Broadcom is helping drive the AI ASIC chip market.
TSMC manufactures the vast majority of AI logic chips.
The artificial intelligence (AI) infrastructure market is booming, with big tech companies set to spend around $725 billion on capital expenditures (capex) this year alone. To put that in perspective, that is more than the gross domestic product (GDP) of all but 22 countries in 2025.
While AI infrastructure stocks have performed well, I think two stocks that have generally been underappreciated during this boom have been Broadcom (NASDAQ: AVGO) and Taiwan Semiconductor Manufacturing (NYSE: TSM). Let's take a closer look at these two unsung AI stocks and why they look like buys.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Broadcom: An ASIC and networking leader
As spending on AI chips ramps to extraordinary levels, hyperscalers (owners of large data centers) have been increasingly looking for ways to save on costs. One of the best ways to do this is to turn to custom chips called application-specific integrated circuits (ASICs). These are chips that are hardwired to handle specific tasks. Because they are sole-purpose chips, they tend to handle the tasks for which they were developed well, while also being more energy efficient. This is particularly ideal for AI inference, which is an ongoing cost.
One of the first companies to hop on the ASIC train was Alphabet, which, with the help of Broadcom, developed its tensor processing units (TPUs) more than a decade ago. Alphabet has long used these chips to power its internal workloads, but as AI exploded, it gave the company a huge cost advantage, as it used its chips to train its Gemini AI model and run inference. With Alphabet being one of the biggest AI data center spenders, Broadcom continues to reap the rewards of being Alphabet's co-developer partner.
Meanwhile, Broadcom added another revenue stream when Alphabet began letting a few select customers directly order TPUs from it, including a $21 billion order from Anthropic to be delivered this year. The three companies have also extended their partnership for future years and TPU iterations. At the same time, the success of TPUs has led to other hyperscalers working with Broadcom to develop their own custom chips. The company claims this will be a well-over $100 billion business in fiscal 2027.
Not to be overlooked, Broadcom is also a leader in data center networking and optical connectivity. Its Ethernet solutions are pivotal in the transfer of data, while it's also at the forefront of co-packaged optics (CPO). By combining optical and electronic components within the same package, CPOs can slash interconnect energy consumption by up to 65% compared to traditional pluggable optics. This business also ties directly into its ASIC business, as customers using its proprietary ASICs need its networking technology to link their chips together.
With Broadcom riding two powerful AI infrastructure trends, ASICs and next-gen optical components, the stock is a buy.
Taiwan Semiconductor Manufacturing: The chip manufacturing king
One of the unheralded stocks of the AI boom is Taiwan Semiconductor Manufacturing, or TSMC for short. While it was recently reported that Alphabet and Nvidia were considering using Intel as a backup chip manufacturer, TSMC still holds a virtual monopoly on the making of advanced logic chips.
At this time, TSMC is the only foundry that has proven it has the expertise to make advanced chips at small node sizes (a measure of chip density) at scale with high yields (few defects). This has made it an indispensable part of the semiconductor value chain and given it strong pricing power. The company is also working with its customers to aggressively expand its capacity to meet rising demand for chips.
With TSMC benefiting from the AI infrastructure boom and poised to be a winner no matter which chip technologies gain share, this is a stock you want to buy and hold for the long term.
Should you buy stock in Broadcom right now?
Before you buy stock in Broadcom, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Broadcom wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $438,283!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,257,427!*
Now, it’s worth noting Stock Advisor’s total average return is 938% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 12, 2026.
Geoffrey Seiler has positions in Alphabet and Broadcom. The Motley Fool has positions in and recommends Alphabet, Broadcom, 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 Unsung Heroes of Big Tech's $725 Billion AI Capex Spend

Key Points
Viewing chips as national security explains U.S. support for Intel, TSMC, and on‑shore fabs.
Investors still must track Intel’s execution, margins, and fab utilization despite policy tailwinds.
National security, advanced chip manufacturing, and shifting global supply chains are reshaping how investors evaluate semiconductor leaders. See how Intel (NASDAQ: INTC), TSMC (NYSE: TSM), and Nvidia (NASDAQ: NVDA) fit into this evolving landscape in the video below.
*This video was published on May 29, 2026.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Should you buy stock 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 $442,220!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,230,114!*
Now, it’s worth noting Stock Advisor’s total average return is 926% — a market-crushing outperformance compared to 203% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 12, 2026.
Andy Cross has positions in Nvidia. Asit Sharma, CPA has positions in Intel and Nvidia. The Motley Fool has positions in and recommends Intel, 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.

Why Intel's National Security Role Could Reshape Its Long-Term Investment Case

Key Points
Though semiconductor stocks have slipped of late, companies in this sector have been clocking healthy revenue and earnings growth.
Shares of Nvidia, Broadcom, and TSMC can rise significantly due to their impressive growth prospects and discounted valuations.
Semiconductor stocks were routed last Friday, June 5, with the sector losing a whopping $1.4 trillion in market cap in a single day. The PHLX Semiconductor Sector index shed more than 10% of its value in a single session, driven by a stronger-than-expected jobs report that has led to an increase in the odds of the Federal Reserve raising interest rates this year.
Not surprisingly, major semiconductor names took a big beating. Nvidia (NASDAQ: NVDA) was down by more than 6%, while foundry giant Taiwan Semiconductor Manufacturing (NYSE: TSM) slipped nearly 7%. Even Broadcom (NASDAQ: AVGO), which released a strong set of results on June 3, wasn't immune from the sell-off, falling nearly 8% on Friday.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
It won't be surprising to see semiconductor stocks recovering from this pullback. The sector has played a key role in driving the stock market rally in recent weeks, and investors may have decided to book profits after pricing in the potential impact of a strong jobs report on the Fed's policy. However, investors will do well to note that the semiconductor sector's rally has been powered by strong revenue and earnings growth, driven primarily by artificial intelligence (AI)-fueled demand.
So, if you have $1,500 in investible cash right now (after paying your bills, clearing any high-interest loans, and saving for tough times), it may be a good idea to capitalize on the semiconductor sector's recent pullback by putting that money into the names discussed in this article, either individually or combined.
Let's take a closer look at some of the top chip stocks you can consider buying right away.
Nvidia and Broadcom are no-brainer buys given their terrific potential
Nvidia and Broadcom dominate the AI chip market in their respective niches. Nvidia sells graphics processing unit (GPU)-based chip systems, and Broadcom designs custom AI processors and networking components. Both kinds of chips are in solid demand due to their distinct advantages. While GPU-based systems are considered ideal for AI training, Broadcom's custom processors are being used for inference-focused tasks in AI data centers.
Not surprisingly, both companies have been benefiting big time from the massive investments in AI data centers. Nvidia's revenue growth in Q1 of fiscal 2027 (for the three months ended April 26) accelerated to 85% year over year from 69% in the same quarter last year. Its top line landed at $81.6 billion last quarter, and the $91 billion estimate for the current quarter points toward a 95% year-over-year increase.
Nvidia's expansion beyond GPUs into the server processor market and its focus on emerging niches, such as physical AI and robotaxis, explain why the company's growth trajectory is improving despite the rising competition in AI chips. As a result, analysts have become bullish about Nvidia's earnings growth prospects.
The stock trades at just 31 times earnings, even though it is estimated to clock earnings growth of 88% this fiscal year. If Nvidia were to trade in line with the tech-focused Nasdaq Composite index's earnings multiple of 40 by the end of fiscal 2027 (which ends in January 2027), its stock could reach $358 (based on the fiscal 2027 earnings per share estimate of $8.96), a potential upside of 72%.
Similarly, Broadcom's growth rate is also picking up. The company is benefiting from lucrative contracts it has signed with multiple hyperscalers and AI companies. This explains why Broadcom's revenue in the second quarter of fiscal 2026 (which ended on May 3) increased by 48% year over year to $22.2 billion, better than the 20% growth it reported in the same period last year.
Broadcom's AI revenue rose by 143% year over year to $10.8 billion. What's more, it expects AI revenue to jump by more than 200% to $16 billion in the current quarter. Importantly, the company's AI revenue growth will continue to improve as it starts ramping up the sales of its AI chips to customers like Anthropic, Meta Platforms, OpenAI, and Google.
As a result, Broadcom sees its AI revenue landing at more than $100 billion in fiscal 2027, which would be a significant improvement over what it has been clocking so far this year. Analysts anticipate a 70% increase in Broadcom's earnings this year, followed by a 66% spike in fiscal 2027 to $19.32 per share. This makes Broadcom a solid buy at 34 times forward earnings.
Assuming its earnings per share indeed reach $19.32 in fiscal 2027, and it trades at 40 times earnings (in line with the Nasdaq Composite), the stock could jump to $772. That's nearly double where Broadcom stock is right now.
This AI kingpin can deliver outstanding gains
TSMC is the world's largest semiconductor foundry. It manufactures chips designed by fabless chipmakers, such as Nvidia, Broadcom, AMD, Qualcomm, and others. What's worth noting is that TSMC's share of the global foundry market increased by five percentage points year over year in Q1 2026, rising to 73%, according to Counterpoint Research.
There's a massive gap between TSMC and second-placed Samsung in the foundry market, with Samsung holding just 7% share. As TSMC makes AI chips for multiple chip designers serving different industries, including smartphones, personal computers (PCs), and data centers, it is easy to see why it has been clocking impressive growth since the beginning of 2024.
The company's earnings per share stood at $10.65 in 2025. The following chart suggests that TSMC's earnings growth will remain robust over the next three years, with its bottom line poised to more than double during this period (from 2025 levels).
TSMC stock trades at 27 times forward earnings. This sets it up for solid upside over the next three years, as it has the potential to more than double if its earnings multiple aligns with the Nasdaq Composite by the end of 2028. So, this is another top AI stock you can consider buying after its recent slip, since it could go on a bull run given its bright prospects.
Should you buy stock 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 $442,220!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,230,114!*
Now, it’s worth noting Stock Advisor’s total average return is 926% — a market-crushing outperformance compared to 203% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Broadcom, Meta Platforms, Nvidia, Qualcomm, 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.

Got $1,500? 3 No-Brainer Artificial Intelligence (AI) Semiconductor Stocks to Buy Before They Soar Once Again

Key Points
SpaceX’s historic IPO looks grossly overvalued.
Broadcom and ASML are much better buys right now.
SpaceX (NASDAQ: SPCX), the aerospace and AI company founded by Elon Musk, will go public on June 12. At its target valuation of $1.77 trillion, it will be the biggest IPO in history.
However, it will also be valued at 95 times its 2025 sales. It's also reportedly more than four times oversubscribed, which suggests it could start trading at well over 100 times sales. That's a frothy valuation for an unprofitable company that grew its revenue by 33% last year.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
So instead of chasing SpaceX, which looks more like a meme stock with some glaring flaws, it's smarter to invest in some established growth stocks with clearer long-term catalysts. These two stocks fit that description: Broadcom (NASDAQ: AVGO) and ASML (NASDAQ: ASML).
Broadcom
Over the past decade, Broadcom has expanded through acquisitions of other chipmakers and infrastructure software companies. The bold strategy transformed it into a more diversified tech company than its peers in the semiconductor and software industries.
Broadcom once mainly produced networking, wireless, mobile, and infrastructure chips. But over the past few years, most of its growth has been driven by sales of custom application-specific integrated circuits (ASICs) for the artificial intelligence (AI) market.
Unlike Nvidia (NASDAQ: NVDA), which produces general-purpose data center GPUs for AI tasks, Broadcom's AI accelerators are customized for hyperscalers. At scale, these custom chips can handle AI tasks more cost-efficiently than Nvidia's stand-alone GPUs. Broadcom also locked in its customers by bundling its AI chips with its non-AI chips and infrastructure software.
In fiscal 2025 (which ended last November), Broadcom's AI chip sales surged 65% to $20 billion, accounting for 31% of its top line. It expects its AI chip sales to soar fivefold to over $100 billion in fiscal 2027 (at least 58% of its projected $171.5 billion in revenue).
From fiscal 2025 to fiscal 2028, analysts expect Broadcom's revenue and EPS to grow at CAGRs of 53% and 66%, respectively, as the AI market expands. Yet its stock still looks surprisingly affordable at 23 times next year's earnings. So if you're looking for a simple way to profit from the ongoing AI boom, Broadcom checks all the right boxes.
ASML
Broadcom, Nvidia, and the world's other top chipmakers couldn't produce their most advanced chips without the Dutch semiconductor equipment giant ASML. ASML is the world's largest producer of lithography systems, which are used to optically etch circuit patterns onto silicon wafers. It's also the only producer of extreme ultraviolet (EUV) lithography systems, which are required to manufacture the world's smallest, densest, and most power-efficient chips.
ASML perfected its EUV technology over the past three decades, and its massive machines cost up to $400 million and require multiple planes to ship. All of the most advanced chip foundries -- including TSMC, Samsung, and Intel -- use those systems to manufacture chips for fabless chipmakers like Broadcom and Nvidia.
ASML's control of that crucial technology gives it tremendous pricing power and makes it a linchpin of the semiconductor market. It also makes it one of the easiest ways to profit from the insatiable demand for new chips without putting too much faith in individual chipmakers.
From 2025 to 2028, analysts expect ASML's revenue and EPS to grow at CAGRs of 17% and 26%, respectively. The soaring demand for new AI and memory chips will drive its near-term growth, while its newest high-NA EUV systems (which will enable its foundry customers to manufacture even smaller chips) will drive its longer-term growth. It might not seem like a bargain at 36 times next year's earnings, but its strengths justify that higher valuation.
Should you buy stock in Space Exploration Technologies right now?
Before you buy stock in Space Exploration Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Space Exploration Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $442,220!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,230,114!*
Now, it’s worth noting Stock Advisor’s total average return is 926% — a market-crushing outperformance compared to 203% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 11, 2026.
Leo Sun has positions in ASML. The Motley Fool has positions in and recommends ASML, Broadcom, Intel, 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.

Forget SpaceX: These 2 Growth Stocks Are Better Buys

Key Points
SpaceX's projected valuation at IPO would make it one of the world's most valuable public companies.
With its 2025 revenue and expected valuation, SpaceX would be more expensive than every "Magnificent Seven" stock.
Investors should be cautious about investing in SpaceX right at its IPO.
When it became clear that SpaceX was headed toward its initial public offering (IPO), most investors could reasonably expect it to be one of the largest ones in recent memory. However, few would've predicted it would become the largest IPO in stock market history.
SpaceX is set to sell 555,555,555 shares at $135 each during its IPO on June 12, raising $75 billion and starting with a valuation of around $1.77 trillion. And while beginning your public debut as the world's eighth most valuable public company (based on market caps on June 8) is quite the feat, the valuation itself isn't the most jarring number. Let's take a look at what it is.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Retail investors will be paying a hefty price for SpaceX
Market cap and valuation by themselves don't necessarily tell you if a stock is "cheap" or "expensive," but you can get an idea of it when you compare it to a company's revenue or profit. Since SpaceX isn't profitable (it lost $4.9 billion in 2025), it's better to look at how its revenue compares to its valuation.
Last year, SpaceX made $18.7 billion in revenue. If we use that figure, its price-to-sales (P/S) ratio -- which tells you how much you're paying per $1 of a company's revenue -- would be 93.6. There's expensive, and then there's that.
For perspective, here is the current P/S ratio of some notable tech companies:
Company
Price-to-Sales Ratio
Nvidia
20.0
Micron
18.2
Tesla
14.8
Alphabet
10.5
Apple
10.0
Microsoft
9.7
Amazon
3.6
Data source: YCharts. P/S ratios as of June 8.
SpaceX would trade at more than 3.5 times Broadcom's price, which is growing revenue 48% and reported $9.31 billion in net income in its most recent quarter (ended May 3). And even Broadcom is very expensive by most standards.
SpaceX will be trading between 4.7 and 26 times as expensive as the "Magnificent Seven" stocks. And while they may not all be perfect apples-to-apples comparisons, they show just how expensive SpaceX's stock will be.
Is it worth investing in SpaceX during its IPO?
A good company doesn't always make a good investment. Regardless of how promising a company is, if you're investing while it's trading at a high premium and priced for perfection (which is the case with SpaceX), you can limit your upside and increase the risk of a post-IPO pop sell-off.
I would steer clear of investing in SpaceX at its IPO because of the virtually inevitable volatility and risks. That doesn't mean it won't eventually be a good investment, but I'd give it time to breathe.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 942%* — a market-crushing outperformance compared to 206% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
*Stock Advisor returns as of June 10, 2026.
Stefon Walters has positions in Apple, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Broadcom, Meta Platforms, Micron Technology, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, and Tesla. 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.

Here Is the Most Jarring Number Ahead of SpaceX's IPO

Key Points
Intel's foundry business has gained solid momentum lately, and a new deal with Google suggests its performance will improve further.
Intel is trading at an expensive valuation right now, but the stock could keep rising as the company can keep delivering better-than-expected growth.
Intel (NASDAQ: INTC) has been on an astounding run on the stock market over the past year. Shares of the semiconductor giant have gained a whopping 427% during this period, but recent stock price action suggests that investors may be having second thoughts about its prospects.
Shares of Intel reached a 52-week high on May 11. However, they have slipped by more than 16% since then. Concerns regarding Intel's expensive valuation, the potential entry of Nvidia into its turf, and the recent dip in semiconductor stocks have weighed on its stock price.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
However, Intel stock could get a solid boost following a new development that reinforces the company's turnaround story. Let's take a closer look at a potentially major win scored by the chipmaker that could supercharge its stock once again.
Intel's foundry business may have landed a huge contract
Technology-focused business publication The Information (via Reuters) reports that Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google has placed an order for manufacturing over three million units of its Tensor Processing Units (TPUs) in 2028 with Intel's foundry unit. These are Google's in-house custom AI processors, in high demand from hyperscalers and AI companies for their price-to-performance advantage over traditional graphics cards for inference workloads.
Google has secured notable contracts with the likes of Anthropic, Meta Platforms, and even Apple to deploy its TPUs in huge numbers to handle AI workloads in data centers. Anthropic, for instance, announced in October 2025 that it will be deploying up to one million Google TPUs in 2026 to power more than 1 gigawatt (GW) of data center capacity.
Not surprisingly, the tech giant needs to produce enough chips to meet strong demand for its TPUs. With foundry giant Taiwan Semiconductor Manufacturing recently warning that "it will be a long time before we can meet customer demand," it is easy to see why Alphabet is now considering alternative options to manufacture enough chips.
What's more, The Information adds that even Nvidia is evaluating Intel's 18A process node to see if it can be used to manufacture a processor that can combine four of its graphics cards into a single platform. Though Nvidia hasn't placed an order with Intel yet, there are clear signs that Intel's foundry business is gaining impressive momentum.
The company has already landed a major foundry customer, Tesla, to manufacture chips for the Terafab project. Even Apple is reportedly in talks with Intel to make chips. All this suggests that Intel's foundry business has the potential to grow nicely in the long run.
But is the stock worth buying now?
Intel's foundry business unit generated $5.4 billion in revenue in the first quarter of 2026, up 16% over the prior year. The unit accounted for 40% of Intel's top line, and it outpaced the 7% jump in the company's overall revenue.
The potential growth in the list of foundry customers can supercharge the company's growth. It is worth noting that analysts are already anticipating solid bottom-line growth from Intel.
The new business that the company is reportedly getting should ideally ensure that its robust earnings growth continues beyond 2028. Of course, the stock remains expensive at 141 times forward earnings, but it may be able to justify that valuation by delivering faster-than-expected earnings growth.
So, investors holding this AI stock can continue to do so, as the improving momentum of Intel's foundry business can give it a shot in the arm and send it soaring in the long run.
Should you buy stock 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 $439,038!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,277,804!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 10, 2026.
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Intel, Meta Platforms, Nvidia, Taiwan Semiconductor Manufacturing, and Tesla. 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 Company Ltd.

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