The Zacks Analyst Blog Highlights NVIDIA, AMD, Micron Technology and Taiwan Semiconductor Manufacturing
For Immediate Release
Chicago, IL – July 23, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA Corp. NVDA, Advanced Micro Devices AMD, Micron Technology, Inc. MU and Taiwan Semiconductor Manufacturing Co. Ltd. TSM.
Here are highlights from Wednesday’s Analyst Blog:
2 AI Infrastructure Stocks That Could Outperform NVIDIA
Despite delivering strong quarterly results that have consistently surpassed expectations this year, NVIDIA Corp.'s stock has gained only 10.9%. This suggests that investors have high expectations for the company that go beyond quarterly results. Given its massive scale, delivering the outsized returns seen in recent years seems increasingly challenging.
Even though demand for NVIDIA's cutting-edge artificial intelligence (AI) chips remains strong, any slowdown in AI-related spending by hyperscale cloud providers could impact the company's revenues and margins. Additionally, NVIDIA faces stiff competition from rivals like Advanced Micro Devices, while tighter U.S. export curbs on advanced chips to China and ongoing geopolitical tensions continue to constrain NVIDIA's growth potential.
As NVIDIA's growth normalizes, investors seeking strong upside should invest in AI infrastructure leaders Micron Technology, Inc. and Taiwan Semiconductor Manufacturing Co. Ltd., better known as TSMC. The two stocks have gained 242.4% and 39.9%, respectively, so far this year and are likely to extend their outperformance over NVIDIA, driven by strong growth trends. Let's see in detail –
Micron's AI Memory Leadership Fuels Explosive Growth
As hyperscalers ramped up spending on AI infrastructure, demand for Micron's state-of-the-art high-bandwidth memory (HBM) chips has surged. The HBM chips are in demand because they manage complex AI workloads efficiently, while delivering greater power efficiency. This momentum helped Micron post revenues of $41.46 billion in the fiscal third quarter of 2026, up 74% sequentially, according to investors.micron.com.
Micron expects revenues to rise further to $50 billion in the fiscal fourth quarter of 2026, supported by continued strength in AI memory demand. Higher sales of high-value memory products coupled with improved pricing power lifted Micron's gross margin to 84.6% in the fiscal third quarter from 37.7% in the year-ago period. Additionally, strategic agreements with Anthropic and a strong cash position have improved the company's long-term demand visibility and strengthened its growth outlook.
As a result, Micron's expected earnings growth rate for the current year is 790.8%. The Zacks Consensus Estimate of $73.85 for MU's earnings per share (EPS) is up 501.9% year over year.
AI Tailwind and Margin Strength Back TSMC's Long-Term Upside
For the second quarter ended on June 30, 2026, TSMC reported revenues of NT$1.27 trillion, up 36% year over year and 12% sequentially, according to investor.tsmc.com. Looking ahead, management expects TSMC to deliver another double-digit sequential revenue growth in the third quarter.
The company's net income for the second quarter came in at NT$706.56 billion, up 77.4% year over year and 23.4% quarter over quarter. Earnings outpacing revenue growth underscored TSMC's strong profitability. It also reflected the robust demand for the company's advanced semiconductor technologies despite huge scale.
TSMC's leadership in manufacturing advanced semiconductors has made it a cornerstone of the rapidly evolving AI ecosystem, supporting sustained long-term growth. TSMC posted a net profit margin of 55.6% in the second quarter, significantly higher than that of most semiconductor peers, reflecting its technological leadership in chip manufacturing, operational efficiency and strong pricing power.
Consequently, TSMC's expected earnings growth rate for the current year is 50.7%. The Zacks Consensus Estimate of $16.21 for TSM's EPS is up 47.1% year over year.
Both Micron and TSMC currently have a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 stocks here.
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Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpAdvanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
Micron Technology, Inc. (MU) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
