Tech Stock Retreat Creates Buying Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 7 hours ago
0mins
Should l Buy TSM?
Source: Fool
- Taiwan Semiconductor's Market Position: Taiwan Semiconductor (TSM), as a primary chip manufacturer, is expected to grow nearly 30% in 2026, reflecting strong confidence in chip demand; despite its current price nearing all-time highs, it remains an essential part of any investment portfolio.
- Nvidia's Growth Potential: Nvidia (NVDA) continues to see robust demand for its GPUs in AI data centers, with a projected 65% revenue growth for fiscal year 2027; although its stock is down nearly 10% from its all-time high, this presents a rare buying opportunity for investors.
- Broadcom's Market Strategy: Broadcom (AVGO) is designing specialized chips for specific workloads, with analysts forecasting a 51% revenue growth in 2026; despite its stock being down nearly 20% from its peak, its unique market strategy positions it advantageously in the competitive landscape.
- Microsoft and Amazon's Slump: Both Microsoft (MSFT) and Amazon (AMZN) have seen their stocks drop 25% and 20% respectively due to disappointing earnings reports, yet their solid fundamentals suggest that the current undervaluation offers a great buying opportunity for investors.
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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: 360.390
Low
63.24
Averages
313.46
High
390.00
Current: 360.390
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.
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Dow Jones Futures Set to Open Sunday Evening
- Market Opening Dynamics: Dow Jones, S&P 500, and Nasdaq futures are set to open Sunday evening, with investors closely monitoring upcoming earnings reports and geopolitical developments, particularly regarding U.S.-Iran relations.
- Nasdaq Outperformance: The stock market rose last week, with the Nasdaq leading the way, indicating a strong rebound in tech stocks that may present new investment opportunities for investors.
- Investor Focus: As Nvidia's earnings report approaches, market sentiment is buoyant, with investors hoping for results that exceed expectations, potentially driving further gains in tech stocks.
- Geopolitical Risks: Recent developments between the U.S. and Iran could impact market sentiment, prompting investors to tread carefully in anticipation of potential volatility, especially ahead of key earnings releases.
See More
Tech Stock Retreat Creates Buying Opportunities
- Taiwan Semiconductor's Market Position: Taiwan Semiconductor (TSM), as a primary chip manufacturer, is expected to grow nearly 30% in 2026, reflecting strong confidence in chip demand; despite its current price nearing all-time highs, it remains an essential part of any investment portfolio.
- Nvidia's Growth Potential: Nvidia (NVDA) continues to see robust demand for its GPUs in AI data centers, with a projected 65% revenue growth for fiscal year 2027; although its stock is down nearly 10% from its all-time high, this presents a rare buying opportunity for investors.
- Broadcom's Market Strategy: Broadcom (AVGO) is designing specialized chips for specific workloads, with analysts forecasting a 51% revenue growth in 2026; despite its stock being down nearly 20% from its peak, its unique market strategy positions it advantageously in the competitive landscape.
- Microsoft and Amazon's Slump: Both Microsoft (MSFT) and Amazon (AMZN) have seen their stocks drop 25% and 20% respectively due to disappointing earnings reports, yet their solid fundamentals suggest that the current undervaluation offers a great buying opportunity for investors.
See More
Al Gore's Investment Firm Acquires Spotify Shares and Divests from Analog Devices
- Investment Changes: Generation Investment Management, co-founded by Al Gore, exited two semiconductor companies in Q4.
- New Acquisitions: The firm invested in shares of a trending streaming provider during the same period.
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Taiwan Surpasses China as America's Top Supplier Amid AI Boom
- Surge in Imports: U.S. imports from Taiwan soared to $24.7 billion in December, more than doubling year-over-year, surpassing China's $21.1 billion exports, highlighting Taiwan's increasing significance in the global supply chain.
- AI Hardware Driving Growth: Trump's tariff system has failed to halt imports; instead, exemptions for computer equipment and chips have facilitated the flow of AI hardware from Taiwan into the U.S., solidifying Taiwan's central role in the AI economy.
- Shift in Trade Flows: Despite a 44% decline in China's exports, demand for semiconductor-producing nations remains strong, with Taiwan emerging as a key supplier for U.S. AI data centers and cloud infrastructure, indicating a significant shift in global trade dynamics.
- Transfer of Technological Power: This shift represents not just a trade anomaly but a structural transfer of technological power, with Taiwan playing a crucial role in the AI arms race, boosting U.S. tech stocks and reshaping global trade itself.
See More
Nvidia and Alphabet's Competitive Market Outlook
- Market Dominance: As of February 17, 2026, Nvidia's market cap reached $4.5 trillion, establishing itself as a cornerstone of the modern AI boom, reflecting its significant influence and market leadership in the tech sector.
- Google Cloud Expansion: Alphabet's capital expenditure budget is projected to double from $91 billion to approximately $180 billion by 2027, indicating substantial investments in AI infrastructure that could further drive growth in its cloud business.
- In-house Chip Potential: Google's collaboration with Broadcom and TSMC to develop Tensor chips tailored for its cloud services may undermine Nvidia's pricing power in the AI hardware market, impacting its future profitability.
- Berkshire's Growth Outlook: Although Berkshire Hathaway's market cap stands at $1.1 trillion, if it achieves a 15% annual growth rate, it could approach Nvidia's valuation within the next decade, showcasing its robust business model and long-term investment appeal.
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
Dow Jones Futures Set to Open Sunday Evening
- Market Opening Dynamics: Dow Jones, S&P 500, and Nasdaq futures are set to open Sunday evening, with investors closely monitoring upcoming earnings reports and geopolitical developments, particularly regarding U.S.-Iran relations.
- Nasdaq Outperformance: The stock market rose last week, with the Nasdaq leading the way, indicating a strong rebound in tech stocks that may present new investment opportunities for investors.
- Investor Focus: As Nvidia's earnings report approaches, market sentiment is buoyant, with investors hoping for results that exceed expectations, potentially driving further gains in tech stocks.
- Geopolitical Risks: Recent developments between the U.S. and Iran could impact market sentiment, prompting investors to tread carefully in anticipation of potential volatility, especially ahead of key earnings releases.
See More
Tech Stock Retreat Creates Buying Opportunities
- Taiwan Semiconductor's Market Position: Taiwan Semiconductor (TSM), as a primary chip manufacturer, is expected to grow nearly 30% in 2026, reflecting strong confidence in chip demand; despite its current price nearing all-time highs, it remains an essential part of any investment portfolio.
- Nvidia's Growth Potential: Nvidia (NVDA) continues to see robust demand for its GPUs in AI data centers, with a projected 65% revenue growth for fiscal year 2027; although its stock is down nearly 10% from its all-time high, this presents a rare buying opportunity for investors.
- Broadcom's Market Strategy: Broadcom (AVGO) is designing specialized chips for specific workloads, with analysts forecasting a 51% revenue growth in 2026; despite its stock being down nearly 20% from its peak, its unique market strategy positions it advantageously in the competitive landscape.
- Microsoft and Amazon's Slump: Both Microsoft (MSFT) and Amazon (AMZN) have seen their stocks drop 25% and 20% respectively due to disappointing earnings reports, yet their solid fundamentals suggest that the current undervaluation offers a great buying opportunity for investors.
See More
Al Gore's Investment Firm Acquires Spotify Shares and Divests from Analog Devices
- Investment Changes: Generation Investment Management, co-founded by Al Gore, exited two semiconductor companies in Q4.
- New Acquisitions: The firm invested in shares of a trending streaming provider during the same period.
See More
Taiwan Surpasses China as America's Top Supplier Amid AI Boom
- Surge in Imports: U.S. imports from Taiwan soared to $24.7 billion in December, more than doubling year-over-year, surpassing China's $21.1 billion exports, highlighting Taiwan's increasing significance in the global supply chain.
- AI Hardware Driving Growth: Trump's tariff system has failed to halt imports; instead, exemptions for computer equipment and chips have facilitated the flow of AI hardware from Taiwan into the U.S., solidifying Taiwan's central role in the AI economy.
- Shift in Trade Flows: Despite a 44% decline in China's exports, demand for semiconductor-producing nations remains strong, with Taiwan emerging as a key supplier for U.S. AI data centers and cloud infrastructure, indicating a significant shift in global trade dynamics.
- Transfer of Technological Power: This shift represents not just a trade anomaly but a structural transfer of technological power, with Taiwan playing a crucial role in the AI arms race, boosting U.S. tech stocks and reshaping global trade itself.
See More
Nvidia and Alphabet's Competitive Market Outlook
- Market Dominance: As of February 17, 2026, Nvidia's market cap reached $4.5 trillion, establishing itself as a cornerstone of the modern AI boom, reflecting its significant influence and market leadership in the tech sector.
- Google Cloud Expansion: Alphabet's capital expenditure budget is projected to double from $91 billion to approximately $180 billion by 2027, indicating substantial investments in AI infrastructure that could further drive growth in its cloud business.
- In-house Chip Potential: Google's collaboration with Broadcom and TSMC to develop Tensor chips tailored for its cloud services may undermine Nvidia's pricing power in the AI hardware market, impacting its future profitability.
- Berkshire's Growth Outlook: Although Berkshire Hathaway's market cap stands at $1.1 trillion, if it achieves a 15% annual growth rate, it could approach Nvidia's valuation within the next decade, showcasing its robust business model and long-term investment appeal.
See More
