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The Zacks Analyst Blog Highlights Micron Technology and Taiwan Semiconductor Manufacturing
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For Immediate Release
Chicago, IL – July 20, 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: Micron Technology, Inc. (MU - Free Report) , Taiwan Semiconductor Manufacturing Company Ltd. (TSM - Free Report) , NVIDIA Corp. (NVDA - Free Report) , Broadcom Inc. (AVGO - Free Report) and Intel Corp. (INTC - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Micron vs. TSMC: Which AI Semiconductor Stock Is a Better Buy Now?
Micron Technology, Inc.and Taiwan Semiconductor Manufacturing Company Ltd., better known as TSMC, have both benefited from the artificial intelligence (AI) boom and have delivered impressive revenue growth and profitability in their latest quarterly results. However, if investors had to choose one stock, which should it be? Let's see in detail –
The Bullish Case for Micron Stock
Micron is no longer considered a cyclical memory stock; instead, it has emerged as a vital supplier of AI infrastructure, having delivered strong quarterly results in recent times and boasting a strong outlook, fueled by robust AI memory demand.
In the fiscal third quarter of 2026, Micron reported revenues of $41.46 billion, up 74% sequentially, and expects even greater revenue growth in the fiscal fourth quarter of 2026, to $50 billion, according to investors.micron.com. This robust growth indicates that demand for Micron's high-bandwidth memory chips, which are used in AI servers, remains strong.
Micron's profitability improved as a result of an increase in demand for its memory products, along with strong pricing power. The company reported a gross margin of 84.6% in the fiscal third quarter, up from 37.7% a year ago. Additionally, a strong operating cash flow of $25.39 billion in the quarter has given Micron the much-needed financial flexibility to support further growth.
The Bullish Case for TSMC Stock
TSMC is known worldwide for manufacturing state-of-the-art semiconductor chips, supplying to tech behemoths like NVIDIA Corp., Broadcom Inc. and Intel Corp., to name a few. Being the leader in producing advanced chips has positioned TSMC at the center of the rapidly expanding AI ecosystem, supporting sustained future growth.
TSMC's profits are growing much faster than revenues. The company reported net income of NT$706.56 billion in the second quarter ended June 30, 2026, up 77.4% year over year and 23.4% sequentially, according to investor.tsmc.com. The contract-chipmaker reported revenues of NT$1.27 trillion in the second quarter, up 36% year over year and 12% quarter over quarter. The strong results reflect stable demand for TSMC's advanced chips, which continues to drive growth despite the company's massive scale.
TSMC's management expects another quarter of double-digit sequential revenue growth in the third quarter. Meanwhile, TSMC's net margin of 55.6% in the second quarter is very high relative to semiconductor peers, indicating strong pricing power, operational efficiency and limited competition.
Micron Has the Edge: Why It's a Better AI Buy Than TSMC Now
Both Micron and TSMC are well-poised to make the most of the AI boom, fueled by incessant demand for cutting-edge memory and semiconductor chips. Both companies continue to exhibit healthy profitability, expanding margins, and optimistic revenue guidance.
However, TSMC's debt-to-equity ratio of 15.8% far exceeds Micron's 5.1%, suggesting greater financial risk and potentially higher downside risk during economic slowdowns.
Additionally, Micron remains more efficient in generating shareholder returns than TSMC. This is because Micron's return on equity (ROE) of 72.5% exceeds TSMC's ROE of 40.9%.
Finally, Micron appears more attractively valued than TSMC. Per the price/earnings ratio, MU trades at 11.55 forward earnings compared with TSM's forward earnings multiple of 26.62.
Therefore, despite both companies remaining leading AI beneficiaries with strong growth prospects, Micron stands out as the better buy due to lower debt, higher returns and a reasonable valuation compared to TSMC. Micron has a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 stocks here.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
View the Zacks #1 Rank List
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The Zacks Analyst Blog Highlights Micron Technology and Taiwan Semiconductor Manufacturing
For Immediate Release
Chicago, IL – July 20, 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: Micron Technology, Inc. (MU - Free Report) , Taiwan Semiconductor Manufacturing Company Ltd. (TSM - Free Report) , NVIDIA Corp. (NVDA - Free Report) , Broadcom Inc. (AVGO - Free Report) and Intel Corp. (INTC - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Micron vs. TSMC: Which AI Semiconductor Stock Is a Better Buy Now?
Micron Technology, Inc.and Taiwan Semiconductor Manufacturing Company Ltd., better known as TSMC, have both benefited from the artificial intelligence (AI) boom and have delivered impressive revenue growth and profitability in their latest quarterly results. However, if investors had to choose one stock, which should it be? Let's see in detail –
The Bullish Case for Micron Stock
Micron is no longer considered a cyclical memory stock; instead, it has emerged as a vital supplier of AI infrastructure, having delivered strong quarterly results in recent times and boasting a strong outlook, fueled by robust AI memory demand.
In the fiscal third quarter of 2026, Micron reported revenues of $41.46 billion, up 74% sequentially, and expects even greater revenue growth in the fiscal fourth quarter of 2026, to $50 billion, according to investors.micron.com. This robust growth indicates that demand for Micron's high-bandwidth memory chips, which are used in AI servers, remains strong.
Micron's profitability improved as a result of an increase in demand for its memory products, along with strong pricing power. The company reported a gross margin of 84.6% in the fiscal third quarter, up from 37.7% a year ago. Additionally, a strong operating cash flow of $25.39 billion in the quarter has given Micron the much-needed financial flexibility to support further growth.
The Bullish Case for TSMC Stock
TSMC is known worldwide for manufacturing state-of-the-art semiconductor chips, supplying to tech behemoths like NVIDIA Corp., Broadcom Inc. and Intel Corp., to name a few. Being the leader in producing advanced chips has positioned TSMC at the center of the rapidly expanding AI ecosystem, supporting sustained future growth.
TSMC's profits are growing much faster than revenues. The company reported net income of NT$706.56 billion in the second quarter ended June 30, 2026, up 77.4% year over year and 23.4% sequentially, according to investor.tsmc.com. The contract-chipmaker reported revenues of NT$1.27 trillion in the second quarter, up 36% year over year and 12% quarter over quarter. The strong results reflect stable demand for TSMC's advanced chips, which continues to drive growth despite the company's massive scale.
TSMC's management expects another quarter of double-digit sequential revenue growth in the third quarter. Meanwhile, TSMC's net margin of 55.6% in the second quarter is very high relative to semiconductor peers, indicating strong pricing power, operational efficiency and limited competition.
Micron Has the Edge: Why It's a Better AI Buy Than TSMC Now
Both Micron and TSMC are well-poised to make the most of the AI boom, fueled by incessant demand for cutting-edge memory and semiconductor chips. Both companies continue to exhibit healthy profitability, expanding margins, and optimistic revenue guidance.
However, TSMC's debt-to-equity ratio of 15.8% far exceeds Micron's 5.1%, suggesting greater financial risk and potentially higher downside risk during economic slowdowns.
Additionally, Micron remains more efficient in generating shareholder returns than TSMC. This is because Micron's return on equity (ROE) of 72.5% exceeds TSMC's ROE of 40.9%.
Finally, Micron appears more attractively valued than TSMC. Per the price/earnings ratio, MU trades at 11.55 forward earnings compared with TSM's forward earnings multiple of 26.62.
Therefore, despite both companies remaining leading AI beneficiaries with strong growth prospects, Micron stands out as the better buy due to lower debt, higher returns and a reasonable valuation compared to TSMC. Micron has a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 stocks here.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.