NVIDIA Corporation NVDA has consistently reported strong quarterly earnings, and its fiscal 2026 fourth quarter looks no different. Continued demand for its Blackwell chips, expanding artificial intelligence (AI)-driven partnerships and increased data center investments all point to continued long-term growth.
However, NVIDIA shares are up just 1.8% so far this year, a lackluster performance that has left Wall Street unmoved. On the other hand, other AI heavyweights, including TSMC TSM, or Taiwan Semiconductor Manufacturing Company, Micron Technology Corporation Mu, and Super Micro Computer Corporation SMCI significantly outperformed the market, rising 21.9%, 50% and 10.8% respectively. So let’s take a look at what’s driving their rise and why further gains are likely ahead –
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As AI hyperscalers ramp up data center construction, demand for the TSMC chips that power those facilities is expected to increase, supporting stronger revenue and earnings growth while potentially pushing stock prices higher.
As in the past, TSMC’s leading process technology is currently experiencing strong demand. As a result, the company expects revenue in the first quarter of 2026 to be between $34.6 billion and $35.8 billion, which would exceed the $33.73 billion in the fourth quarter of 2025 and represent a year-over-year increase of 25.5% and a sequential increase of 1.9%.
TSMC also expects its profit margins to strengthen, with gross margin expected to be between 63% and 65% in the first quarter of 2026, up from 62.3% in the fourth quarter of 2025. Therefore, TSMC’s profit growth rate for this quarter is expected to be 53.8%, and its full-year profit growth rate is 32.8%.
As data center operators and AI hyperscalers continue to increase investments in infrastructure, demand for Micron’s high-bandwidth memory (HBM) chips is set to increase. Ongoing supply constraints for HBM chips have created a supply-demand imbalance that could enhance Micron’s pricing power, improve margins and support higher stock prices.
Micron CEO Sanjay Mehrotra acknowledged that continued demand for HBM chips amid tight supply supports the company’s future growth. Micron expects revenue in the second quarter of fiscal 2026 to be between $18.3 billion and $19.1 billion, up from $13.64 billion in the first quarter of fiscal 2026, according to investors.micron.com.
Management also remains optimistic about Micron’s net profit growth. Micron’s expected earnings growth rates for the current quarter and full year are 444.9% and 307.6% respectively.
