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Zacks Investment Ideas feature highlights: Taiwan Semiconductor and ASML
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For Immediate Release
Chicago, IL – July 22, 2026 – Today, Zacks Investment Ideas feature highlights Taiwan Semiconductor (TSM - Free Report) and ASML Holding (ASML - Free Report) .
AI Demand Leads to Blowout Results for These Semiconductor Giants
The 2026 Q2 earnings season really picks up pace this week, with a few Magnificent Seven members, namely Alphabet and Tesla, headlining the docket. The big banks got us off to a great start, delivering solid results without giving the market any unexpected spooks.
So far throughout the cycle, several companies, including Taiwan Semiconductor and ASML Holding, have both raised sales guidance, again underpinning just how fierce the demand picture has become concerning the AI frenzy.
ASML Plans to Increase Capacity
ASML designs, develops, integrates, and services advanced systems used by major global semiconductor manufacturers to create cutting-edge chips that power artificial intelligence, high-performance computing, and a wide array of other electronic and communications technologies.
Strong AI-driven demand led ASML to raise its full-year sales outlook in its recent quarterly release, also now planning to boost its machine production capacity over the next several years due to strong order intake. Overall sales of $10.8 billion grew 25% YoY, while earnings also saw strong growth, both crushing our consensus estimates.
The stock's outlook remains bullish, with EPS revisions jumping higher across the board post-earnings.
TSM Posts Huge Growth
Taiwan Semiconductor, a current Zacks Rank #1 (Strong Buy), is the world's leading semiconductor foundry, reflecting a highly critical player in the technology landscape amid the AI frenzy. It manufactures the powerful chips needed to run next-generation AI technologies.
Thanks to the huge wave of artificial intelligence spending, TSMC raised its full-year revenue growth forecast to roughly 40%. The company also increased its CapEx budget to a range of $60 - $64 billion to expand its manufacturing capacity to keep pace with the soaring demand for advanced AI chips. Sales of $40.2 billion grew 33% YoY, with earnings also climbing a rock-solid 75% YoY. Both items beat our consensus estimates handily.
EPS revisions have moved higher across near-term timeframes following the release, keeping the stock's momentum and overall outlook notably bright.
Bottom Line
The 2026 Q2 earnings season is kicking into a much higher gear this week, with many notable companies slated to report in the coming days and weeks.
And so far, both ASML Holding and Taiwan Semiconductor have been standouts thanks to red-hot demand. The results from the pair further underscore just how fierce the AI landscape remains, with each posting blockbuster numbers while also raising their sales outlooks.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
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/performancefor information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Taiwan Semiconductor and ASML
For Immediate Release
Chicago, IL – July 22, 2026 – Today, Zacks Investment Ideas feature highlights Taiwan Semiconductor (TSM - Free Report) and ASML Holding (ASML - Free Report) .
AI Demand Leads to Blowout Results for These Semiconductor Giants
The 2026 Q2 earnings season really picks up pace this week, with a few Magnificent Seven members, namely Alphabet and Tesla, headlining the docket. The big banks got us off to a great start, delivering solid results without giving the market any unexpected spooks.
So far throughout the cycle, several companies, including Taiwan Semiconductor and ASML Holding, have both raised sales guidance, again underpinning just how fierce the demand picture has become concerning the AI frenzy.
ASML Plans to Increase Capacity
ASML designs, develops, integrates, and services advanced systems used by major global semiconductor manufacturers to create cutting-edge chips that power artificial intelligence, high-performance computing, and a wide array of other electronic and communications technologies.
Strong AI-driven demand led ASML to raise its full-year sales outlook in its recent quarterly release, also now planning to boost its machine production capacity over the next several years due to strong order intake. Overall sales of $10.8 billion grew 25% YoY, while earnings also saw strong growth, both crushing our consensus estimates.
The stock's outlook remains bullish, with EPS revisions jumping higher across the board post-earnings.
TSM Posts Huge Growth
Taiwan Semiconductor, a current Zacks Rank #1 (Strong Buy), is the world's leading semiconductor foundry, reflecting a highly critical player in the technology landscape amid the AI frenzy. It manufactures the powerful chips needed to run next-generation AI technologies.
Thanks to the huge wave of artificial intelligence spending, TSMC raised its full-year revenue growth forecast to roughly 40%. The company also increased its CapEx budget to a range of $60 - $64 billion to expand its manufacturing capacity to keep pace with the soaring demand for advanced AI chips. Sales of $40.2 billion grew 33% YoY, with earnings also climbing a rock-solid 75% YoY. Both items beat our consensus estimates handily.
EPS revisions have moved higher across near-term timeframes following the release, keeping the stock's momentum and overall outlook notably bright.
Bottom Line
The 2026 Q2 earnings season is kicking into a much higher gear this week, with many notable companies slated to report in the coming days and weeks.
And so far, both ASML Holding and Taiwan Semiconductor have been standouts thanks to red-hot demand. The results from the pair further underscore just how fierce the AI landscape remains, with each posting blockbuster numbers while also raising their sales outlooks.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
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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/performancefor information about the performance numbers displayed in this press release.