Stock Market Update: Dow Jones, S&P 500, and Nasdaq Futures Rise Slightly as Investors Anticipate Key PCE Data
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 26 2025
0mins
Should l Buy TSM?
Source: Benzinga
Market Overview: U.S. stock futures are up slightly after a decline on Thursday, with major economic data expected to influence market sentiment, including the Personal Consumption Expenditures index.
Sector Performance: Most S&P 500 sectors were down on Thursday, with health care and consumer discretionary leading losses, while Intel Corp. was a standout gainer, rising 8.87% due to investment talks.
Economic Data Insights: Analysts note that the S&P 500's significant rally since 2019 is supported by earnings growth, and upcoming economic data releases on personal income and spending are anticipated to impact market direction.
Global Market Trends: Asian markets are mostly down, while European markets show gains; crude oil and gold prices have seen slight increases, reflecting mixed global economic signals.
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Analyst Views on TSM
Wall Street analysts forecast TSM stock price to fall
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 362.260
Low
63.24
Averages
313.46
High
390.00
Current: 362.260
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.
TSMC Poised to Benefit from AI Infrastructure Growth
- Market Growth Potential: TSMC projects a 25% CAGR through 2029, implying revenue could approach $237 billion, and if current margins are maintained, annual EPS could rise to $20.61, indicating robust profitability and market demand.
- Price Forecast: With a forward P/E of 26.4, the expected share price by 2029 is $543, representing a 48% increase from current levels, which would elevate market capitalization to over $2.8 trillion, reflecting optimistic market expectations for future growth.
- Industry Leadership: As the world's leading foundry, TSMC produces over 10,000 products annually, with a 48% growth rate in high-performance computing chips projected for 2025, underscoring its critical role in the AI and other high-demand markets.
- Investment Value: TSMC's unique position as a major manufacturer of smartphone and automotive chips, coupled with its pivotal role in the AI market, makes it an ideal investment choice, with expectations to surpass a $3 trillion market cap before 2030, positioning it as one of the most attractive investments today.
See More
Three AI Stocks Leading Growth Investment
- Market Leader: Nvidia commands approximately 90% of the GPU market, benefiting significantly from AI infrastructure spending due to its cutting-edge chip designs and CUDA software platform, which are expected to drive long-term growth for the company.
- Cost Advantage: Alphabet gains a structural cost advantage by designing its own TPU chips, allowing it to train and run AI models more cheaply than competitors, while also starting to lease TPUs at scale, creating a new revenue stream.
- Industry Monopoly: Taiwan Semiconductor Manufacturing, as the leading chip manufacturer globally, has established a de facto monopoly in advanced chip production due to its unmatched technological expertise and scale, and is expected to maintain strong pricing power moving forward.
- Long-term Investment Value: All three companies trade at reasonable forward P/E ratios, with Nvidia at 23.5, Alphabet at 26.5, and TSMC at 25.5, indicating their potential for long-term investment in the rapidly growing AI market.
See More
Nvidia and Others Poised for Growth from AI Infrastructure Expansion
- Surge in AI Infrastructure Investment: The five largest hyperscalers have committed to spending $700 billion by 2025 to expand cloud capacity, a figure exceeding the GDP of 24 countries, indicating strong demand for AI infrastructure that will drive growth for related companies.
- Nvidia's Market Dominance: Nvidia holds approximately 90% of the GPU market share, with its chips being the primary processors for AI workloads; its cutting-edge chip designs and CUDA software platform have established a strong moat, positioning the company to benefit from the ongoing AI boom.
- Alphabet's Technological Edge: Alphabet boasts the most complete AI tech stack, including the leading large language model Gemini and proprietary TPU chips, enabling it to train and run AI models at lower costs, thereby reinforcing its market leadership.
- TSMC's Growth Potential: As the world's leading chip manufacturer, TSMC is significantly ramping up production capacity and plans to raise prices over the next four years; with its technological expertise and scale, it is expected to maintain a crucial role in the booming AI infrastructure market.
See More
US Stocks Rebound with Nasdaq Leading Gains Amid Easing AI Concerns
- Market Divergence: As of 2026, the S&P 500 is up less than 1%, while international markets (ACWX) have risen about 9%, highlighting a significant divergence that suggests investors should consider the benefits of global portfolio diversification.
- Sector Rotation Trends: Small caps are outperforming large caps, and value stocks are surpassing growth stocks, with emerging markets showing strong performance compared to developed markets, potentially offering new growth opportunities for investors.
- Defensive Investment Strategy: Utility stocks like Duke Energy have risen over 10% year-to-date, with a 3.3% dividend yield and an 18x forward P/E ratio, making them ideal for investors seeking safety amid market volatility while also participating in the AI revolution's power dynamics.
- Future Market Outlook: Although 2026 may face short-term volatility, historical data indicates that markets typically achieve a 100% probability of gains in the second year, with an average return of 27%, encouraging investors to seek growth opportunities in the current environment.
See More
Investment Opportunities in Tech Stocks Amid AI Surge
- Amazon's AI Investment: Amazon plans to invest $200 billion in AI and cloud computing by 2026, and despite a current 20% stock drop, this strategy will enhance its competitive edge in the cloud services market, particularly as AI applications drive demand for its AWS business.
- Salesforce's Market Rebound: Salesforce's stock has fallen to 15 times forward earnings due to AI concerns, yet it is expected to grow earnings by 18% annually over the next three to five years, and its proactive integration of AI features will enhance customer retention, making it a rebound candidate.
- Taiwan Semiconductor's Growth Potential: As the world's leading foundry, Taiwan Semiconductor is projected to grow earnings by 30% annually over the next three to five years, with significant opportunities in AI data centers, and its current stock price is only 25 times this year's earnings estimates, indicating a strong buy signal.
- Impact of AI on the Market: With global data center spending expected to approach $6.7 trillion by 2030, Taiwan Semiconductor, as a major chip supplier, stands to benefit significantly from this trend, solidifying its core position in the global tech industry.
See More
Coatue Management's Notable Investment Shifts in 2025
- Significant Netflix Increase: Coatue Management expanded its Netflix holdings from approximately 618,735 shares to over 10.86 million shares in Q1 2025, reflecting strong confidence in the streaming sector and potentially driving future revenue growth for the firm.
- Lam Research Investment Surge: The fund's allocation in Lam Research grew by 142% year-over-year to 9.81 million shares, indicating a robust expectation for semiconductor equipment demand, which may enhance its market position in the technology sector.
- Emerging Portfolio Expansion: In 2025, Coatue added companies like Oracle, Synopsys, and Snowflake to its portfolio, demonstrating a focus on cloud computing and data analytics, aiming to capitalize on future technological advancements.
- Tesla Holdings Reduction: Despite overall portfolio expansion, Coatue trimmed its Tesla holdings by 24% year-over-year to 1.64 million shares, reflecting a cautious outlook on the electric vehicle market, which could impact its long-term strategic positioning in this sector.
See More
TSMC Poised to Benefit from AI Infrastructure Growth
- Market Growth Potential: TSMC projects a 25% CAGR through 2029, implying revenue could approach $237 billion, and if current margins are maintained, annual EPS could rise to $20.61, indicating robust profitability and market demand.
- Price Forecast: With a forward P/E of 26.4, the expected share price by 2029 is $543, representing a 48% increase from current levels, which would elevate market capitalization to over $2.8 trillion, reflecting optimistic market expectations for future growth.
- Industry Leadership: As the world's leading foundry, TSMC produces over 10,000 products annually, with a 48% growth rate in high-performance computing chips projected for 2025, underscoring its critical role in the AI and other high-demand markets.
- Investment Value: TSMC's unique position as a major manufacturer of smartphone and automotive chips, coupled with its pivotal role in the AI market, makes it an ideal investment choice, with expectations to surpass a $3 trillion market cap before 2030, positioning it as one of the most attractive investments today.
See More
Three AI Stocks Leading Growth Investment
- Market Leader: Nvidia commands approximately 90% of the GPU market, benefiting significantly from AI infrastructure spending due to its cutting-edge chip designs and CUDA software platform, which are expected to drive long-term growth for the company.
- Cost Advantage: Alphabet gains a structural cost advantage by designing its own TPU chips, allowing it to train and run AI models more cheaply than competitors, while also starting to lease TPUs at scale, creating a new revenue stream.
- Industry Monopoly: Taiwan Semiconductor Manufacturing, as the leading chip manufacturer globally, has established a de facto monopoly in advanced chip production due to its unmatched technological expertise and scale, and is expected to maintain strong pricing power moving forward.
- Long-term Investment Value: All three companies trade at reasonable forward P/E ratios, with Nvidia at 23.5, Alphabet at 26.5, and TSMC at 25.5, indicating their potential for long-term investment in the rapidly growing AI market.
See More
Nvidia and Others Poised for Growth from AI Infrastructure Expansion
- Surge in AI Infrastructure Investment: The five largest hyperscalers have committed to spending $700 billion by 2025 to expand cloud capacity, a figure exceeding the GDP of 24 countries, indicating strong demand for AI infrastructure that will drive growth for related companies.
- Nvidia's Market Dominance: Nvidia holds approximately 90% of the GPU market share, with its chips being the primary processors for AI workloads; its cutting-edge chip designs and CUDA software platform have established a strong moat, positioning the company to benefit from the ongoing AI boom.
- Alphabet's Technological Edge: Alphabet boasts the most complete AI tech stack, including the leading large language model Gemini and proprietary TPU chips, enabling it to train and run AI models at lower costs, thereby reinforcing its market leadership.
- TSMC's Growth Potential: As the world's leading chip manufacturer, TSMC is significantly ramping up production capacity and plans to raise prices over the next four years; with its technological expertise and scale, it is expected to maintain a crucial role in the booming AI infrastructure market.
See More
US Stocks Rebound with Nasdaq Leading Gains Amid Easing AI Concerns
- Market Divergence: As of 2026, the S&P 500 is up less than 1%, while international markets (ACWX) have risen about 9%, highlighting a significant divergence that suggests investors should consider the benefits of global portfolio diversification.
- Sector Rotation Trends: Small caps are outperforming large caps, and value stocks are surpassing growth stocks, with emerging markets showing strong performance compared to developed markets, potentially offering new growth opportunities for investors.
- Defensive Investment Strategy: Utility stocks like Duke Energy have risen over 10% year-to-date, with a 3.3% dividend yield and an 18x forward P/E ratio, making them ideal for investors seeking safety amid market volatility while also participating in the AI revolution's power dynamics.
- Future Market Outlook: Although 2026 may face short-term volatility, historical data indicates that markets typically achieve a 100% probability of gains in the second year, with an average return of 27%, encouraging investors to seek growth opportunities in the current environment.
See More
Investment Opportunities in Tech Stocks Amid AI Surge
- Amazon's AI Investment: Amazon plans to invest $200 billion in AI and cloud computing by 2026, and despite a current 20% stock drop, this strategy will enhance its competitive edge in the cloud services market, particularly as AI applications drive demand for its AWS business.
- Salesforce's Market Rebound: Salesforce's stock has fallen to 15 times forward earnings due to AI concerns, yet it is expected to grow earnings by 18% annually over the next three to five years, and its proactive integration of AI features will enhance customer retention, making it a rebound candidate.
- Taiwan Semiconductor's Growth Potential: As the world's leading foundry, Taiwan Semiconductor is projected to grow earnings by 30% annually over the next three to five years, with significant opportunities in AI data centers, and its current stock price is only 25 times this year's earnings estimates, indicating a strong buy signal.
- Impact of AI on the Market: With global data center spending expected to approach $6.7 trillion by 2030, Taiwan Semiconductor, as a major chip supplier, stands to benefit significantly from this trend, solidifying its core position in the global tech industry.
See More
Coatue Management's Notable Investment Shifts in 2025
- Significant Netflix Increase: Coatue Management expanded its Netflix holdings from approximately 618,735 shares to over 10.86 million shares in Q1 2025, reflecting strong confidence in the streaming sector and potentially driving future revenue growth for the firm.
- Lam Research Investment Surge: The fund's allocation in Lam Research grew by 142% year-over-year to 9.81 million shares, indicating a robust expectation for semiconductor equipment demand, which may enhance its market position in the technology sector.
- Emerging Portfolio Expansion: In 2025, Coatue added companies like Oracle, Synopsys, and Snowflake to its portfolio, demonstrating a focus on cloud computing and data analytics, aiming to capitalize on future technological advancements.
- Tesla Holdings Reduction: Despite overall portfolio expansion, Coatue trimmed its Tesla holdings by 24% year-over-year to 1.64 million shares, reflecting a cautious outlook on the electric vehicle market, which could impact its long-term strategic positioning in this sector.
See More
