Three Top Stock Picks for 2026 Gains
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 31 2026
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.
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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: 425.830
Low
63.24
Averages
313.46
High
390.00
Current: 425.830
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.
Jim Cramer Sees Further Upside for Intel Stock
- Stock Recovery: Intel's stock has surged from a low of $20 in August 2025 to around $121, marking a 228% increase year-to-date, indicating strong market recovery and investor confidence in its growth prospects.
- AI Demand Surge: The rising demand for artificial intelligence infrastructure is expected to dramatically increase the need for Intel's central processing units (CPUs), positioning the company favorably for future market opportunities and enhancing profitability.
- New Business Expansion: Intel is developing its foundry business to manufacture chips for third-party customers, and Cramer notes that with surging AI spending, more chip designers will seek U.S.-based alternative suppliers, potentially increasing Intel's market share.
- Optimistic Market Outlook: Cramer emphasizes that despite Intel's significant stock price increase, its prospects in the data center hardware sector remain optimistic, suggesting that investors should focus on future growth potential rather than past performance.
See More
Investors Should Focus on Nvidia and TSMC
- Nvidia's Strong Profitability: Nvidia reported a net income of $1.87 per share in the latest quarter, reflecting a staggering 140% year-over-year increase, indicating surging demand for its AI processors and the potential for sustained profitability that could provide stable returns for investors in the coming years.
- Significant Market Share Advantage: Nvidia commands 86% of AI revenue in data centers, far surpassing its closest competitor AMD at 7%, which positions the company favorably in the AI sector and allows it to maintain a competitive edge in future technological advancements.
- TSMC's Manufacturing Leadership: Taiwan Semiconductor manufactures 68% of the world's processors and 90% of advanced processors, with Q1 revenue rising 41% to nearly $36 billion, showcasing its robust manufacturing capabilities in the AI processor market and expected continued benefits from future demand.
- Relatively Undervalued Stock: Both Nvidia and TSMC have P/E ratios of 32 and 38, respectively, which are below the tech sector average, making their stocks appear relatively cheap in the current market environment, suggesting that long-term holding could yield substantial returns for investors.
See More
Recap of CNBC Investing Club Monthly Meeting
- Portfolio Analysis: During the June Monthly Meeting, Jim Cramer and Jeff Marks provided an in-depth analysis of 35 portfolio stocks, highlighting their preference for Intel due to its significant upside potential in data center CPU growth, particularly in the context of competition with TSMC.
- Tech Giants Restructuring: Cramer noted a reordering of the 'Magnificent Seven,' with newcomers like SpaceX and the yet-to-go-public Anthropic and OpenAI emerging as formidable competitors, indicating intensified market competition, especially in the AI sector.
- Strengths of Alphabet and Apple: Alphabet is positioned advantageously in the AI era with its YouTube and Waymo businesses, while Apple leverages its ecosystem of over 2.5 billion iPhone users to strengthen its AI partnership with Alphabet, showcasing both companies' robust market positions.
- Market Dynamics and Investment Strategy: Despite challenges faced by Meta and Microsoft, Cramer advises maintaining investments in Amazon and Nvidia, believing that the latter's GPU demand will continue to grow, and that Amazon's cloud business remains highly profitable.
See More
AMD and Intel Stocks Rise Amid Chipmaking Capacity Tightness
- Stock Price Surge: AMD rose approximately 3% in premarket trading, while Intel gained about 4%, reflecting investor optimism regarding tight chip manufacturing capacity, indicating a recovery in market confidence in the semiconductor sector.
- Samsung Collaboration Potential: Samsung Electronics is in talks with companies including AMD, Alphabet, BYD, and Tesla about future chip production, which could provide AMD with more production capacity to meet increasing demand, particularly in AI-related products.
- TSMC Capacity Constraints: The report highlights that much of Taiwan Semiconductor Manufacturing Company's leading-edge capacity is already booked, reminding investors that only a few companies can produce the most advanced chips at scale, thereby enhancing Intel's strategic importance in expanding its foundry business.
- Intensifying Market Competition: Despite the stock price increases, AMD still needs to demonstrate its ability to gain market share in AI chips, while Intel must prove that its manufacturing turnaround can attract real external customers, leaving uncertainty about the future for both companies.
See More
Market Dynamics and Investment Opportunities Analysis
- Fed Meeting Outlook: Ahead of the upcoming Federal Reserve meeting, the market widely expects rates to remain unchanged, yet Chairman Kevin Warsh's comments could significantly influence market sentiment and investor decisions, potentially leading to increased volatility.
- Semiconductor Sector Prospects: Citi has raised price targets for Applied Materials, Lam Research, and KLA Corp, forecasting that spending on wafer fabrication equipment could reach $250 billion by 2028, indicating a 25% growth potential that presents substantial market opportunities for these companies.
- Intel's Process Advancement: Intel has commenced production of its latest 18A-P manufacturing process, which delivers 9% higher performance or 18% lower power consumption compared to its predecessor, potentially securing Apple as a foundry customer and strengthening its market position.
- FedEx Earnings Outlook: Although Wells Fargo lowered FedEx's price target, analysts anticipate that next quarter's earnings report may be noisy due to fiscal calendar adjustments, yet they expect strong actual results that could offset the complex outlook.
See More
TSMC Reports 30% Revenue Growth in May
- Significant Revenue Growth: TSMC reported May revenue of NT$416.98 billion ($13.2 billion), marking a 30% year-over-year increase, indicating sustained demand for advanced chips, particularly in AI applications and data centers.
- Record Capital Expenditure: Major clients like Alphabet, Amazon, and Microsoft have allocated $725 billion for AI-related investments in 2023, further driving demand for TSMC's products and strengthening its market position.
- Executive Share Purchase: TSMC Vice President Lipen Yuan purchased 1,000 shares for approximately $75,260 on Tuesday, increasing his direct holdings to 4,000 shares, reflecting confidence in the company's future prospects.
- Market Rebound Trend: TSMC's U.S. shares rose 2%, nearing a $2 trillion market cap, reflecting optimistic sentiment in the semiconductor sector, despite retail investors expressing caution regarding short-term outlooks.
See More
Jim Cramer Sees Further Upside for Intel Stock
- Stock Recovery: Intel's stock has surged from a low of $20 in August 2025 to around $121, marking a 228% increase year-to-date, indicating strong market recovery and investor confidence in its growth prospects.
- AI Demand Surge: The rising demand for artificial intelligence infrastructure is expected to dramatically increase the need for Intel's central processing units (CPUs), positioning the company favorably for future market opportunities and enhancing profitability.
- New Business Expansion: Intel is developing its foundry business to manufacture chips for third-party customers, and Cramer notes that with surging AI spending, more chip designers will seek U.S.-based alternative suppliers, potentially increasing Intel's market share.
- Optimistic Market Outlook: Cramer emphasizes that despite Intel's significant stock price increase, its prospects in the data center hardware sector remain optimistic, suggesting that investors should focus on future growth potential rather than past performance.
See More
Investors Should Focus on Nvidia and TSMC
- Nvidia's Strong Profitability: Nvidia reported a net income of $1.87 per share in the latest quarter, reflecting a staggering 140% year-over-year increase, indicating surging demand for its AI processors and the potential for sustained profitability that could provide stable returns for investors in the coming years.
- Significant Market Share Advantage: Nvidia commands 86% of AI revenue in data centers, far surpassing its closest competitor AMD at 7%, which positions the company favorably in the AI sector and allows it to maintain a competitive edge in future technological advancements.
- TSMC's Manufacturing Leadership: Taiwan Semiconductor manufactures 68% of the world's processors and 90% of advanced processors, with Q1 revenue rising 41% to nearly $36 billion, showcasing its robust manufacturing capabilities in the AI processor market and expected continued benefits from future demand.
- Relatively Undervalued Stock: Both Nvidia and TSMC have P/E ratios of 32 and 38, respectively, which are below the tech sector average, making their stocks appear relatively cheap in the current market environment, suggesting that long-term holding could yield substantial returns for investors.
See More
Recap of CNBC Investing Club Monthly Meeting
- Portfolio Analysis: During the June Monthly Meeting, Jim Cramer and Jeff Marks provided an in-depth analysis of 35 portfolio stocks, highlighting their preference for Intel due to its significant upside potential in data center CPU growth, particularly in the context of competition with TSMC.
- Tech Giants Restructuring: Cramer noted a reordering of the 'Magnificent Seven,' with newcomers like SpaceX and the yet-to-go-public Anthropic and OpenAI emerging as formidable competitors, indicating intensified market competition, especially in the AI sector.
- Strengths of Alphabet and Apple: Alphabet is positioned advantageously in the AI era with its YouTube and Waymo businesses, while Apple leverages its ecosystem of over 2.5 billion iPhone users to strengthen its AI partnership with Alphabet, showcasing both companies' robust market positions.
- Market Dynamics and Investment Strategy: Despite challenges faced by Meta and Microsoft, Cramer advises maintaining investments in Amazon and Nvidia, believing that the latter's GPU demand will continue to grow, and that Amazon's cloud business remains highly profitable.
See More
AMD and Intel Stocks Rise Amid Chipmaking Capacity Tightness
- Stock Price Surge: AMD rose approximately 3% in premarket trading, while Intel gained about 4%, reflecting investor optimism regarding tight chip manufacturing capacity, indicating a recovery in market confidence in the semiconductor sector.
- Samsung Collaboration Potential: Samsung Electronics is in talks with companies including AMD, Alphabet, BYD, and Tesla about future chip production, which could provide AMD with more production capacity to meet increasing demand, particularly in AI-related products.
- TSMC Capacity Constraints: The report highlights that much of Taiwan Semiconductor Manufacturing Company's leading-edge capacity is already booked, reminding investors that only a few companies can produce the most advanced chips at scale, thereby enhancing Intel's strategic importance in expanding its foundry business.
- Intensifying Market Competition: Despite the stock price increases, AMD still needs to demonstrate its ability to gain market share in AI chips, while Intel must prove that its manufacturing turnaround can attract real external customers, leaving uncertainty about the future for both companies.
See More
Market Dynamics and Investment Opportunities Analysis
- Fed Meeting Outlook: Ahead of the upcoming Federal Reserve meeting, the market widely expects rates to remain unchanged, yet Chairman Kevin Warsh's comments could significantly influence market sentiment and investor decisions, potentially leading to increased volatility.
- Semiconductor Sector Prospects: Citi has raised price targets for Applied Materials, Lam Research, and KLA Corp, forecasting that spending on wafer fabrication equipment could reach $250 billion by 2028, indicating a 25% growth potential that presents substantial market opportunities for these companies.
- Intel's Process Advancement: Intel has commenced production of its latest 18A-P manufacturing process, which delivers 9% higher performance or 18% lower power consumption compared to its predecessor, potentially securing Apple as a foundry customer and strengthening its market position.
- FedEx Earnings Outlook: Although Wells Fargo lowered FedEx's price target, analysts anticipate that next quarter's earnings report may be noisy due to fiscal calendar adjustments, yet they expect strong actual results that could offset the complex outlook.
See More
TSMC Reports 30% Revenue Growth in May
- Significant Revenue Growth: TSMC reported May revenue of NT$416.98 billion ($13.2 billion), marking a 30% year-over-year increase, indicating sustained demand for advanced chips, particularly in AI applications and data centers.
- Record Capital Expenditure: Major clients like Alphabet, Amazon, and Microsoft have allocated $725 billion for AI-related investments in 2023, further driving demand for TSMC's products and strengthening its market position.
- Executive Share Purchase: TSMC Vice President Lipen Yuan purchased 1,000 shares for approximately $75,260 on Tuesday, increasing his direct holdings to 4,000 shares, reflecting confidence in the company's future prospects.
- Market Rebound Trend: TSMC's U.S. shares rose 2%, nearing a $2 trillion market cap, reflecting optimistic sentiment in the semiconductor sector, despite retail investors expressing caution regarding short-term outlooks.
See More
