Analysts expect AI infrastructure spending to keep rising for the next few years, with Gartner projecting nearly $2 trillion by 2027 and 87% of surveyed companies expecting their spending to at least double by 2028. The article argues TSMC, the world's largest foundry, benefits regardless of which AI chip company gains share, since it manufactures chips for Nvidia, AMD, Broadcom, Marvell and Alphabet's TPUs. Last quarter revenue rose nearly 34% to $40.2 billion with a 67.7% gross margin, and revenue grew 45%, 52% and 55% in July, August and September in local currency. Analysts forecast adjusted EPS rising from $16.96 this year to $28.64 in 2028. The author estimates that at 18x to 22x forward P/E the stock could trade at $775 to $950 in three years, making a $1,400 investment (three shares) worth $2,325 to $2,850 in 2029; key risks are an AI spending slowdown or TSMC losing share and pricing power to Samsung, Intel or the Terrafab joint venture.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Related news
- Taiwan Semiconductor Manufacturing Just Dropped a Major Bombshell Investors Must Be Aware Of
Taiwan Semiconductor Manufacturing (TSM) reports Q3 earnings on October 15, but its monthly revenue already points to accelerating growth. Analysts forecast revenue growth of 47% in Q3 and 54% in Q4, while the stock trades at about 27 times forward earnings, versus nearly 70 times for Intel and about 80 times for AMD. Wall Street has modeled 36% growth for 2027, but the author believes the true rate could be closer to the mid-40% range seen this year. The author argues that if TSMC signals 2027 growth at or above 2026's pace, the stock could rise sharply after the report.
- Here's What a $10,000 Investment in Apple Stock Could Be Worth in 5 Years
Apple has a $5 trillion market cap, and its stock is up more than 1,070% over the past decade. The iPhone accounts for roughly half of sales, while the services segment has a much higher gross margin than products (mid-70% versus roughly 40%), letting profit grow faster than revenue thanks to ecosystem lock-in and a 36% share of Google search revenue. The main concern is valuation: the P/E is closer to 40 versus 15 to 20 before the pandemic. The article calculates that at a 20 to 30 times forward P/E, the stock would trade between $330 and $500, a 3% decline to a 47% gain, putting a just-under-$10,000 investment at between $9,570 and $14,500. The author concludes the stock will likely underperform the market over five years and would pass on buying it now.
- Prediction: Here's What a $5,000 Investment in Archer Aviation Will Be Worth in 3 Years
Archer Aviation (ACHR) trades near $5 a share, down from about $7.50 at the close of 2025 and below $7 for much of 2026. The eVTOL company earned just $300,000 in revenue in 2025, and its Midnight aircraft still lacks FAA approval for commercial flights. The author expects FAA type certification by 2029, noting Archer has completed three of four certification phases, and sees upside from a planned purchase of three Boeing subsidiaries, including Insitu, a drone maker with over $200 million in annual revenue. The main risk is dilution from further capital raises and shares issued for the deal, as Archer lost about $260 million in the second quarter alone. The author sees a shot at $8 a share by October 2029, which would turn $5,000 into $8,000, while stressing that this is not a guarantee.
- Zacks Investment Ideas feature highlights: Qualcomm, Alphabet, Tesla, AMD, Amazon, Taiwan Semiconductor, NVIDIA, Intel, Apple, Broadcom and SpaceX
Zacks argues the AI trade remains intact despite a shaky macro backdrop and soaring energy prices. AI-related spending on data centers, GPUs and energy has accounted for more than a quarter of total U.S. GDP growth, outpacing past infrastructure projects such as the Interstate Highway System and the Apollo program. Samsung reported the most profitable quarter ever for any company, at $80.2 billion, amid huge demand for memory from AI data centers. TSMC reported record Q3 revenue of $46.7 billion, up 50% year over year, and produces over 60% of global contract chips and over 90% of advanced chips. SpaceX plans to raise $40 billion in debt to buy NVIDIA chips, with a payback period well under one year thanks to deals with Google and Anthropic.
- Prediction: $5,000 Invested in Taiwan Semiconductor Could Be Worth This Much by 2030
The article argues that Taiwan Semiconductor (NYSE: TSM) has risen 380% over the past three years and more than 45% so far this year, driven largely by the AI boom. It describes TSMC as the world's largest chip foundry, with a 73% share of the foundry market and a share of advanced AI chips in the upper 90% range, and as the manufacturer for customers including Apple, Nvidia and Broadcom. Over the same three years, gross margin rose from 54.1% to 67.7%, and revenue grew 33.7% year over year in the second quarter. Assuming the share price stays flat through 2026 and the valuation multiple holds, the author estimates that EPS growth of about 15.6% a year could turn a $5,000 investment into roughly $8,000 by 2030, while stressing that this is an illustration rather than a guaranteed outcome.
- If You Invest $5,000 in VOO Today, Here's What History Says It Could Be Worth in 20 Years
The article uses historical returns to illustrate how a $5,000 investment in the Vanguard S&P 500 ETF (VOO) could grow over 20 years. It cites an average annual return of 9.98% for the S&P 500 since 1928 and 14.94% for VOO since its launch in September 2010. The author models three scenarios: a base case at 9.98%, a bull case at 14.94%, and a bear case at 7% per year. The article stresses that past returns are not guaranteed and that the stock market could crash or the S&P 500 could struggle.
Related markets
Latest news
- Intel stock pops after JPMorgan gives a Neutral upgrade
JPMorgan (JPM) upgraded Intel (INTC) to Neutral from Underweight. The note points to improving execution under CEO Lip-Bu Tan, potential foundry customers for next-generation manufacturing, and rising earnings estimates for 2027 and 2028.
- Intel leads chip stocks higher as investors jump back into AI trade
Chip stocks rebounded on Monday as investors bought the dip after last week's steep AI trade sell-off. The PHLX Semiconductor Index (^SOX) rose 2%, reversing a recent semiconductor rout. Intel (INTC) jumped 5% after JPMorgan upgraded the stock to Buy, citing "solid execution." Nvidia (NVDA) and AMD (AMD) also gained, while a Goldman Sachs upgrade of CoreWeave (CRWV) to Buy from Neutral helped lift AI sentiment. Arm Holdings (ARM), Micron Technology (MU) and SK Hynix (SKHY) also rebounded after sharp declines last week.
- Netflix stock is down roughly 25% in 2026 as Q3 earnings loom
Netflix (NFLX) reports third-quarter results after the bell on Tuesday, with the stock down more than 25% this year and closing Friday near $70, versus $93.76 at the end of 2025. Investors are worried about slowing viewership, competition from YouTube, and live sports moving to Amazon Prime Video and HBO Max. Last week Netflix cut about 6% of its workforce (roughly 1,000 employees) and named Peter Rice its new chief content officer, and five firms lowered price targets in October. Analysts expect EPS of $0.82 on revenue of $12.88 billion, up about 12% from a year earlier, in line with Netflix's own forecast. KeyBanc's Justin Patterson wants more content investment, product changes, expense cuts and a possible first-ever dividend.
- Cleveland-Cliffs Jumps 10% on Strongest Quarter in Three Years; Nucor and Steel Dynamics Edge Higher
Cleveland-Cliffs (CLF) rose 10% to $13.29 after reporting third-quarter adjusted EBITDA of $612 million, beating its $575 million guidance and up sharply from $143 million a year earlier. Revenue of $5.61 billion missed the $5.72 billion expected, though sales rose 18.6% year over year on a higher average net selling price of $1,177 per ton and larger shipments. Management said imports remain well below historical levels, but it indefinitely idled the galvanizing lines at its Canadian unit Stelco due to oversupply. The company guided to about $715 million of adjusted EBITDA in Q4 and said 2027 adjusted EBITDA should exceed $4 billion based on current index price forecasts. Its target is to bring net debt to EBITDA below 2.5x by mid-2027.
- Tech rebounds as semiconductor stocks jump: AlphaCheck
Stocks were mostly higher on Monday as investors turned their focus to earnings season, with semiconductor stocks rebounding after last week's sharp sell-off. The Tech sector (XLK) rose, led by Nvidia (NVDA), AMD (AMD), Micron (MU) and SK Hynix (SKHY). Intel (INTC) also jumped after JPMorgan analysts upgraded the stock, while CoreWeave (CRWV), hammered last week, rebounded on a Goldman Sachs upgrade. Investors are watching this week's reports from Netflix (NFLX), SpaceX (SPCX), Tesla (TSLA) and Meta (META). The 10-year Treasury (^TNX) yield hovered near 5.1%, while Brent crude (BZ=F) dropped to $108 per barrel and WTI (CL=F) hovered below $98.
- AI capex may be Meta's biggest earnings test
Meta Platforms (META) reports third-quarter earnings after the close on Wednesday, alongside a wave of Big Tech peers. The GAAP EPS estimate is $3.54, though that figure may be messy because a legal settlement will be included and analysts differ on how it will be accounted for. Options imply a 3.2% move in either direction, the smallest since the fourth-quarter report before last. Estimates for next year's capex vary widely: Wedbush near $250 billion, Evercore ISI $210 billion, Bank of America $205 billion and Dan Ives around $194 billion. Most analysts say that spending is acceptable if Meta provides a Muse roadmap and confidence it can monetize it, and the stock is up about seven and a half percent year to date.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.