Three Top Stock Picks for 2026 Gains
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 20h ago
0mins
Source: Fool
- TSMC Market Leadership: TSMC anticipates a nearly 60% CAGR for AI-related chips from 2024 to 2029, indicating robust market demand, and plans to invest $52 billion to $56 billion to expand production capacity, thereby solidifying its leadership in the global semiconductor market.
- Broadcom's Custom Chip Growth: Broadcom expects its AI semiconductor revenue to double year-over-year in Q1, and while this division currently does not account for half of total revenue, it is projected to reach that level by the end of FY 2026, showcasing strong growth potential in the AI sector.
- Trade Desk's Rebound Opportunity: Although Trade Desk's growth is slowing, with Q3 marking its lowest revenue growth rate in history, it is still projected to achieve 16% growth in 2026, making it a buying opportunity for investors, especially with a low P/E ratio of 16 times.
- Investment Timing in AI Market: With the rapid advancement of AI technology, TSMC and Broadcom's investments are likely to drive their stock prices up, while Trade Desk may find new growth avenues amid competition, suggesting that all three stocks could yield significant returns by 2026.
Get Free Real-Time Notifications for Any Stock
Monitor tickers like TSM with instant alerts to capture every critical market movement.
Sign up for free to build your custom watchlist and receive professional-grade stock notifications.
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.
TSMC Dominates AI Chip Supply Chain with Unmatched Technology
- Surging Market Demand: TSMC is dominating the AI chip supply chain with unmatched technology and scale, which is expected to benefit from the exploding market demand and strong margins, driving long-term growth prospects.
- Investment Advisory: Despite TSMC's strong performance in the AI chip sector, it was not included in the current best stock picks by The Motley Fool Stock Advisor analyst team, indicating a cautious market sentiment regarding its future performance.
- Historical Return Comparison: Compared to Netflix and Nvidia, which were recommended in 2004 and 2005 respectively and yielded returns of $450,256 and $1,171,666, TSMC's investment potential remains underappreciated, highlighting the risks and opportunities in market selections.
- Investor Community: Joining The Motley Fool Stock Advisor provides access to the latest investment recommendations; although TSMC is not on the list, the service boasts a total return rate of 942%, significantly outperforming the S&P 500's 196%, demonstrating the effectiveness of its investment strategy.
Continue Reading
Three AI Stocks to Buy and Hold Forever
- Alphabet's Competitive Edge: Alphabet's Gemini generative AI model has emerged as a market leader, leveraging its unique ability to integrate personal information, which provides an unmatched competitive advantage in the AI sector, positioning it to lead the market for the next decade.
- Microsoft's Neutral Strategy: By partnering with companies like OpenAI, Microsoft offers access to various AI models, and the rapid growth of its Azure cloud computing platform indicates that its neutral investment strategy in AI will enable gradual ascendance in the future.
- Taiwan Semiconductor's Core Role: As the backbone of most AI technologies, Taiwan Semiconductor's chips will continue to play a crucial role in AI computing; despite competition, the short-term demand for chips remains strong, ensuring its long-term investment value.
- Long-Term Demand from Data Center Construction: Although AI computing capacity is being built out, the lengthy construction cycles of data centers mean that Taiwan Semiconductor's potential during the AI growth phase remains significant, with continued benefits expected from chip demand in the coming years.
Continue Reading