Three Tech Stocks Poised for Growth Over Next Five Years
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 hours ago
0mins
Should l Buy TSM?
Source: Fool
- AI-Driven Growth: Nvidia, Taiwan Semiconductor, and Broadcom are positioned crucially in the AI sector, expected to benefit from a surge in data center spending over the next five years, driving significant stock price increases.
- Taiwan Semiconductor Revenue Forecast: Taiwan Semiconductor anticipates its AI-related chip revenue will grow at nearly a 60% compound annual growth rate, indicating strong market demand and future profitability potential.
- Broadcom Price Target: Broadcom's average one-year price target is $460, requiring only a 47% increase to reach the $500 target, with expectations of achieving this within the next two years.
- Nvidia's Challenge: Although Nvidia needs to rise 163% to hit $500, with data center spending projected to reach $3 trillion, Nvidia has the potential to achieve this target within five years, possibly exceeding it.
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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: 366.360
Low
63.24
Averages
313.46
High
390.00
Current: 366.360
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 and US Reach Trade Agreement to Boost Semiconductor Exports
- Trade Agreement Reached: Taiwan and the US reached a trade agreement on February 13, aimed at balancing trade between the two countries, particularly in light of Taiwan's surging AI chip exports, indicating a willingness for technological cooperation.
- Tariff Reduction: The US has lowered tariffs on Taiwanese imports from 20% to 15%, aligning with rates in South Korea and Japan, which will create a more favorable export environment for TSMC, further solidifying its position in the US market.
- Investment Commitment: The Taiwanese government pledged over $250 billion in investments in US semiconductor, energy, and AI production, including TSMC's previously announced $100 billion investment in January, highlighting Taiwan's critical role in the global semiconductor supply chain.
- Analyst Rating Upgrade: On February 13, Gil Luria of D.A. Davidson initiated a Buy rating for TSMC with a $450 price target, emphasizing the company's competitive edge in advanced semiconductor manufacturing as demand continues to surge.
See More
Reassessment of AI Spending Impacts Major Tech Stocks
- Market Value Loss: In 2026, major tech companies including Microsoft, Amazon, Nvidia, Apple, and Alphabet saw a combined market value drop of over $1.3 trillion due to a reassessment of AI spending, indicating investor caution regarding elevated capital expenditure plans.
- Semiconductor Industry Outlook: Despite market volatility, the semiconductor sector remains robust, with global chip sales reaching $791.7 billion in 2025 and projected to grow by 26% in 2026, positioning the industry to approach $1 trillion in annual revenue.
- Accelerating Data Center Demand: SIA CEO John Neuffer highlighted that increasing demand for data centers is driving growth in the semiconductor industry, while also noting that cyclical fluctuations are likely to persist, reflecting the dynamic nature of the market.
- Nvidia Earnings Focus: Nvidia is set to report earnings on February 25, 2026, and despite recent stock weakness, analysts like Jim Cramer have dubbed it the “GOAT,” emphasizing its competitive position and resilience in the market.
See More
Three Tech Stocks Poised for Growth Over Next Five Years
- AI-Driven Growth: Nvidia, Taiwan Semiconductor, and Broadcom are positioned crucially in the AI sector, expected to benefit from a surge in data center spending over the next five years, driving significant stock price increases.
- Taiwan Semiconductor Revenue Forecast: Taiwan Semiconductor anticipates its AI-related chip revenue will grow at nearly a 60% compound annual growth rate, indicating strong market demand and future profitability potential.
- Broadcom Price Target: Broadcom's average one-year price target is $460, requiring only a 47% increase to reach the $500 target, with expectations of achieving this within the next two years.
- Nvidia's Challenge: Although Nvidia needs to rise 163% to hit $500, with data center spending projected to reach $3 trillion, Nvidia has the potential to achieve this target within five years, possibly exceeding it.
See More
2026 Data Center Construction Boom Ahead
- Surge in AI Spending: Spending on artificial intelligence is projected to reach new heights by 2026, driving significant growth for Nvidia, Broadcom, and Taiwan Semiconductor, making them top picks for investors looking to capitalize on this trend.
- Capital Expenditure Forecast: Amazon, Alphabet, and Meta are expected to collectively invest over $500 billion in 2026 for data center construction and equipment purchases, with Nvidia and Broadcom benefiting significantly as chips account for nearly half of data center construction costs.
- Significant Growth Potential: Nvidia forecasts that global data center capital expenditures will reach $3 trillion to $4 trillion annually by 2030, indicating immense future demand for infrastructure, which could drive stock prices of related companies higher.
- Market Valuation Lag: Despite Nvidia, Broadcom, and Taiwan Semiconductor being projected to achieve impressive revenue growth, the market has not assigned them significant premiums, with Nvidia expected to grow 64% in fiscal 2027, while Broadcom and Taiwan Semiconductor are projected to grow 51% and 34%, respectively.
See More
AI Infrastructure Drives Semiconductor Industry Growth
- Surging Market Demand: Five companies are projected to spend a staggering $700 billion on AI data centers this year, driving rapid growth in the semiconductor industry, particularly benefiting firms like Nvidia and Broadcom.
- Nvidia's Market Dominance: With approximately 90% market share in graphics processing units (GPUs), Nvidia's CUDA software platform provides robust support for AI training, which is expected to further boost its revenue growth.
- Broadcom's Custom Chip Advantage: Broadcom is assisting customers in developing custom AI application-specific integrated circuits (ASICs), which, while less flexible than GPUs, offer advantages in energy efficiency and cost-effectiveness, likely leading to rapid market share growth.
- Micron's DRAM Shortage Opportunity: As demand for high-bandwidth memory (HBM) surges, Micron, as one of the major DRAM manufacturers, is set to benefit from an ongoing supercycle, significantly enhancing its revenue and gross margins.
See More
AI Spending Surge: Data Center Investment Outlook Brightens
- AI Spending Forecast: Global spending on artificial intelligence is projected to reach $300 billion to $400 billion by 2026, reflecting hyperscalers' immense potential and investment willingness in this technology, which is likely to drive stock prices of Nvidia, Broadcom, and Taiwan Semiconductor higher.
- Total Capital Expenditure: Amazon, Alphabet, and Meta Platforms are expected to collectively invest over $500 billion in 2023 for data center construction and equipment procurement, indicating strong demand for AI infrastructure and further promoting growth in related industries.
- Surge in Chip Demand: Chips account for nearly half of the costs in data center construction, positioning Nvidia and Broadcom to directly benefit from this trend, while Taiwan Semiconductor, as a major chip manufacturer, will continue to profit, ensuring its significant market position.
- Market Valuation Rationality: Despite Nvidia, Broadcom, and Taiwan Semiconductor being projected to achieve impressive revenue growth rates of 64%, 51%, and 34% respectively, the market has not assigned them significant premiums, indicating that these stocks remain highly attractive investment options at current prices.
See More
TSMC and US Reach Trade Agreement to Boost Semiconductor Exports
- Trade Agreement Reached: Taiwan and the US reached a trade agreement on February 13, aimed at balancing trade between the two countries, particularly in light of Taiwan's surging AI chip exports, indicating a willingness for technological cooperation.
- Tariff Reduction: The US has lowered tariffs on Taiwanese imports from 20% to 15%, aligning with rates in South Korea and Japan, which will create a more favorable export environment for TSMC, further solidifying its position in the US market.
- Investment Commitment: The Taiwanese government pledged over $250 billion in investments in US semiconductor, energy, and AI production, including TSMC's previously announced $100 billion investment in January, highlighting Taiwan's critical role in the global semiconductor supply chain.
- Analyst Rating Upgrade: On February 13, Gil Luria of D.A. Davidson initiated a Buy rating for TSMC with a $450 price target, emphasizing the company's competitive edge in advanced semiconductor manufacturing as demand continues to surge.
See More
Reassessment of AI Spending Impacts Major Tech Stocks
- Market Value Loss: In 2026, major tech companies including Microsoft, Amazon, Nvidia, Apple, and Alphabet saw a combined market value drop of over $1.3 trillion due to a reassessment of AI spending, indicating investor caution regarding elevated capital expenditure plans.
- Semiconductor Industry Outlook: Despite market volatility, the semiconductor sector remains robust, with global chip sales reaching $791.7 billion in 2025 and projected to grow by 26% in 2026, positioning the industry to approach $1 trillion in annual revenue.
- Accelerating Data Center Demand: SIA CEO John Neuffer highlighted that increasing demand for data centers is driving growth in the semiconductor industry, while also noting that cyclical fluctuations are likely to persist, reflecting the dynamic nature of the market.
- Nvidia Earnings Focus: Nvidia is set to report earnings on February 25, 2026, and despite recent stock weakness, analysts like Jim Cramer have dubbed it the “GOAT,” emphasizing its competitive position and resilience in the market.
See More
Three Tech Stocks Poised for Growth Over Next Five Years
- AI-Driven Growth: Nvidia, Taiwan Semiconductor, and Broadcom are positioned crucially in the AI sector, expected to benefit from a surge in data center spending over the next five years, driving significant stock price increases.
- Taiwan Semiconductor Revenue Forecast: Taiwan Semiconductor anticipates its AI-related chip revenue will grow at nearly a 60% compound annual growth rate, indicating strong market demand and future profitability potential.
- Broadcom Price Target: Broadcom's average one-year price target is $460, requiring only a 47% increase to reach the $500 target, with expectations of achieving this within the next two years.
- Nvidia's Challenge: Although Nvidia needs to rise 163% to hit $500, with data center spending projected to reach $3 trillion, Nvidia has the potential to achieve this target within five years, possibly exceeding it.
See More
2026 Data Center Construction Boom Ahead
- Surge in AI Spending: Spending on artificial intelligence is projected to reach new heights by 2026, driving significant growth for Nvidia, Broadcom, and Taiwan Semiconductor, making them top picks for investors looking to capitalize on this trend.
- Capital Expenditure Forecast: Amazon, Alphabet, and Meta are expected to collectively invest over $500 billion in 2026 for data center construction and equipment purchases, with Nvidia and Broadcom benefiting significantly as chips account for nearly half of data center construction costs.
- Significant Growth Potential: Nvidia forecasts that global data center capital expenditures will reach $3 trillion to $4 trillion annually by 2030, indicating immense future demand for infrastructure, which could drive stock prices of related companies higher.
- Market Valuation Lag: Despite Nvidia, Broadcom, and Taiwan Semiconductor being projected to achieve impressive revenue growth, the market has not assigned them significant premiums, with Nvidia expected to grow 64% in fiscal 2027, while Broadcom and Taiwan Semiconductor are projected to grow 51% and 34%, respectively.
See More
AI Infrastructure Drives Semiconductor Industry Growth
- Surging Market Demand: Five companies are projected to spend a staggering $700 billion on AI data centers this year, driving rapid growth in the semiconductor industry, particularly benefiting firms like Nvidia and Broadcom.
- Nvidia's Market Dominance: With approximately 90% market share in graphics processing units (GPUs), Nvidia's CUDA software platform provides robust support for AI training, which is expected to further boost its revenue growth.
- Broadcom's Custom Chip Advantage: Broadcom is assisting customers in developing custom AI application-specific integrated circuits (ASICs), which, while less flexible than GPUs, offer advantages in energy efficiency and cost-effectiveness, likely leading to rapid market share growth.
- Micron's DRAM Shortage Opportunity: As demand for high-bandwidth memory (HBM) surges, Micron, as one of the major DRAM manufacturers, is set to benefit from an ongoing supercycle, significantly enhancing its revenue and gross margins.
See More
AI Spending Surge: Data Center Investment Outlook Brightens
- AI Spending Forecast: Global spending on artificial intelligence is projected to reach $300 billion to $400 billion by 2026, reflecting hyperscalers' immense potential and investment willingness in this technology, which is likely to drive stock prices of Nvidia, Broadcom, and Taiwan Semiconductor higher.
- Total Capital Expenditure: Amazon, Alphabet, and Meta Platforms are expected to collectively invest over $500 billion in 2023 for data center construction and equipment procurement, indicating strong demand for AI infrastructure and further promoting growth in related industries.
- Surge in Chip Demand: Chips account for nearly half of the costs in data center construction, positioning Nvidia and Broadcom to directly benefit from this trend, while Taiwan Semiconductor, as a major chip manufacturer, will continue to profit, ensuring its significant market position.
- Market Valuation Rationality: Despite Nvidia, Broadcom, and Taiwan Semiconductor being projected to achieve impressive revenue growth rates of 64%, 51%, and 34% respectively, the market has not assigned them significant premiums, indicating that these stocks remain highly attractive investment options at current prices.
See More
