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These 3 Red-Hot Stocks Have Benefited From AI Tailwinds
Key Takeaways
TSM, ENTG, and MTSI have all been red-hot over the past month.
Each is seeing favorable tailwinds stemming from the ongoing AI buildout.
All three sport a favorable Zacks Rank, with rising earnings estimates supporting the near-term momentum.
Semiconductor stocks have again taken center stage over the past month, with AI-related demand continuing to provide a strong industry-wide tailwind.
Taiwan Semiconductor Manufacturing (TSM - Free Report) , Entegris (ENTG - Free Report) , and MACOM Technology Solutions (MTSI - Free Report) have all posted notable gains over the last month.
Image Source: Zacks Investment Research
All three offer different ways to gain exposure to the ongoing AI infrastructure buildout, with each also sporting a favorable Zacks Rank.
MACOM Rides AI Connectivity Demand
MACOM Technology Solutions, a current Zacks Rank #2 (Buy), provides semiconductor products across data centers, telecom, industrial, and defense markets, with its AI-related optical business becoming an increasingly important growth driver.
Its latest quarterly results were rock-solid, with sales climbing 36% YoY and Data Center revenue jumping 81% from the same period last year. The earnings outlook has followed the momentum, with estimates soaring across the board.
Image Source: Zacks Investment Research
The growth is expected to continue in a big way, with current consensus estimates suggesting 36% sales growth on nearly 60% higher earnings in its current fiscal year, with sales expected to climb 35% on 50% higher earnings in FY27.
Image Source: Zacks Investment Research
TSM Hits Fresh Highs
Taiwan Semiconductor Manufacturing, a current Zacks Rank #2 (Buy), is the world’s leading semiconductor foundry, producing advanced chips for many of the industry’s biggest names. Its earnings outlook continues to support the favorable price action, with estimates remaining bullish.
Image Source: Zacks Investment Research
Current Zacks Consensus estimates suggest 55% earnings growth on 37% higher sales in its current fiscal year, with FY27 estimates calling for another 29% earnings growth on nearly 32% higher revenue. Demand for leading-edge chips remains immense, putting TSMC at the center of the AI infrastructure buildout.
Image Source: Zacks Investment Research
Entegris Reports Strong Results
Entegris, a current Zacks Rank #2 (Buy), provides advanced materials, filtration, purification, and other products used throughout semiconductor manufacturing. Recent quarterly results help explain the strong momentum, with sales climbing 11.5% YoY and adjusted earnings jumping 41% in its latest period.
Demand tied to advanced nodes, HBM, and advanced packaging has remained strong, and increasingly complex semiconductor manufacturing has created a favorable backdrop for the company’s specialized offerings.
The growth outlook remains solid, with current Zacks Consensus estimates suggesting 11% sales growth in FY26 and 12% in FY27, with earnings expected to grow 42% and 25% over the same periods.
Image Source: Zacks Investment Research
Putting Everything Together
Chip momentum has been red-hot over the past month, with Taiwan Semiconductor Manufacturing (TSM - Free Report) , Entegris (ENTG - Free Report) , and MACOM Technology Solutions (MTSI - Free Report) all seeing sizable gains.
TSMC continues to benefit from red-hot demand for advanced chips, Entegris from rising semiconductor complexity, and MACOM from the growing optical connectivity needs of AI data centers.
View the Zacks #1 Rank List
Image: Bigstock
These 3 Red-Hot Stocks Have Benefited From AI Tailwinds
Key Takeaways
Semiconductor stocks have again taken center stage over the past month, with AI-related demand continuing to provide a strong industry-wide tailwind.
Taiwan Semiconductor Manufacturing (TSM - Free Report) , Entegris (ENTG - Free Report) , and MACOM Technology Solutions (MTSI - Free Report) have all posted notable gains over the last month.
Image Source: Zacks Investment Research
All three offer different ways to gain exposure to the ongoing AI infrastructure buildout, with each also sporting a favorable Zacks Rank.
MACOM Rides AI Connectivity Demand
MACOM Technology Solutions, a current Zacks Rank #2 (Buy), provides semiconductor products across data centers, telecom, industrial, and defense markets, with its AI-related optical business becoming an increasingly important growth driver.
Its latest quarterly results were rock-solid, with sales climbing 36% YoY and Data Center revenue jumping 81% from the same period last year. The earnings outlook has followed the momentum, with estimates soaring across the board.
Image Source: Zacks Investment Research
The growth is expected to continue in a big way, with current consensus estimates suggesting 36% sales growth on nearly 60% higher earnings in its current fiscal year, with sales expected to climb 35% on 50% higher earnings in FY27.
Image Source: Zacks Investment Research
TSM Hits Fresh Highs
Taiwan Semiconductor Manufacturing, a current Zacks Rank #2 (Buy), is the world’s leading semiconductor foundry, producing advanced chips for many of the industry’s biggest names. Its earnings outlook continues to support the favorable price action, with estimates remaining bullish.
Image Source: Zacks Investment Research
Current Zacks Consensus estimates suggest 55% earnings growth on 37% higher sales in its current fiscal year, with FY27 estimates calling for another 29% earnings growth on nearly 32% higher revenue. Demand for leading-edge chips remains immense, putting TSMC at the center of the AI infrastructure buildout.
Image Source: Zacks Investment Research
Entegris Reports Strong Results
Entegris, a current Zacks Rank #2 (Buy), provides advanced materials, filtration, purification, and other products used throughout semiconductor manufacturing. Recent quarterly results help explain the strong momentum, with sales climbing 11.5% YoY and adjusted earnings jumping 41% in its latest period.
Demand tied to advanced nodes, HBM, and advanced packaging has remained strong, and increasingly complex semiconductor manufacturing has created a favorable backdrop for the company’s specialized offerings.
The growth outlook remains solid, with current Zacks Consensus estimates suggesting 11% sales growth in FY26 and 12% in FY27, with earnings expected to grow 42% and 25% over the same periods.
Image Source: Zacks Investment Research
Putting Everything Together
Chip momentum has been red-hot over the past month, with Taiwan Semiconductor Manufacturing (TSM - Free Report) , Entegris (ENTG - Free Report) , and MACOM Technology Solutions (MTSI - Free Report) all seeing sizable gains.
TSMC continues to benefit from red-hot demand for advanced chips, Entegris from rising semiconductor complexity, and MACOM from the growing optical connectivity needs of AI data centers.