2026 Investment Opportunities: Semiconductors and Ad Platforms
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- TSMC Earnings Outlook: Taiwan Semiconductor Manufacturing (TSM) reported outstanding Q4 2025 earnings, with management forecasting nearly 30% revenue growth in 2026 and a projected 60% compound annual growth rate for AI chip revenue from 2024 to 2029, highlighting its pivotal role in the AI infrastructure spending boom.
- Ad Platform Recovery Potential: The Trade Desk (TTD) has seen its stock price plummet 75% from its all-time high; however, it still achieved an 18% revenue growth in Q3, with Wall Street analysts expecting a 16% growth in 2026, indicating strong market demand, and its current price represents a bargain at 15 times expected forward earnings.
- Nebius Growth Prospects: Nebius (NBIS), a lesser-known company, focuses on data centers and cutting-edge GPU applications, with management forecasting a revenue surge from $551 million to between $7 billion and $9 billion by 2026, positioning it as one of the most attractive growth stocks in the market right now.
- Market Investment Timing: As the earnings season for 2026 approaches, investors should pay attention to these companies' performances, particularly in the AI and advertising technology sectors, which are expected to yield substantial returns for investors in the coming years.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy TSM?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on TSM
Wall Street analysts forecast TSM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSM is 313.46 USD with a low forecast of 63.24 USD and a high forecast of 390.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 339.550
Low
63.24
Averages
313.46
High
390.00
Current: 339.550
Low
63.24
Averages
313.46
High
390.00
About TSM
Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based integrated circuit foundry service provider. The Company is primarily engaged in integrated circuit manufacturing services. It offers advanced process technologies, specialised process solutions, advanced photomask and silicon stacking, and packaging-related technologies, while supporting a comprehensive design ecosystem. The Company's products serve diverse electronic sectors including artificial intelligence, high-performance computing, wired and wireless communications, automotive and industrial equipment, personal computing, information applications, consumer electronics, smart internet of things, and wearable devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AI Growth Forecast Positions TSMC as a Key Player
- Market Forecast: Renowned investor Cathie Wood's Ark Invest predicts that AI data center spending will triple from $500 billion to $1.4 trillion by 2030, creating substantial market opportunities for companies like TSMC.
- Technological Edge: TSMC, as a leading chip manufacturer, maintains close relationships with top AI chip designers like Nvidia and Broadcom, ensuring a dual advantage in both GPU and AI ASIC markets, positioning itself favorably in the rapidly growing AI sector.
- Enhanced Pricing Power: With a near monopoly in advanced chip manufacturing, TSMC has laid out a four-year price hike schedule for customers, which not only boosts its gross margin but also strengthens its pricing power, further solidifying its market leadership.
- Increased Capital Expenditure: TSMC plans to raise its capital expenditure budget from $41 billion in 2025 to between $52 billion and $56 billion, reflecting strong confidence in AI revenue growth at a mid- to high-50% compound annual growth rate (CAGR), indicating an optimistic outlook on long-term market trends.
Continue Reading
Taiwan Semiconductor's Growth Potential in AI Infrastructure
- TSMC Earnings Outlook: Taiwan Semiconductor's Q4 2025 earnings report indicates an expected overall revenue growth of nearly 30% in 2026, with AI chip revenue projected to grow at a compound annual rate of nearly 60% from 2024 to 2029, highlighting its central role in AI infrastructure development.
- Trade Desk Market Opportunity: Despite a 75% drop from its all-time high, Trade Desk's Q3 revenue grew by 18%, and analysts forecast a 16% growth for 2026, with shares currently priced at just 15 times expected forward earnings, indicating strong investment potential.
- Nebius Growth Potential: Nebius currently has an annual revenue run rate of $551 million, with expectations to grow to between $7 billion and $9 billion by the end of 2026, positioning it as one of the best growth stocks in the market, particularly in the AI data center sector.
- Investment Recommendations: While Taiwan Semiconductor was not included in the Motley Fool Stock Advisor's current top stock picks, its significance and growth potential in AI infrastructure continue to attract investor interest, especially with the upcoming earnings season.
Continue Reading