The Zacks Analyst Blog Highlights NVIDIA, Taiwan Semiconductor, Micron Technology and Super Micro Computer

Rebecca French

2 months ago

Chicago, IL – February 24, 2026 – Zacks.com announces the list of stocks featured in analyst blogs. Zacks Equity Research analysts discuss the latest news and events affecting stocks and financial markets every day. Recent stock recommendations on the blog include: NVIDIA Corp. NVDA, Taiwan Semiconductor Manufacturing Co. (TSM), Taiwan Semiconductor Manufacturing Co. (TSMC), Micron Technology Inc. (MU) and Super Micro Computer Corporation (SMCI).

Here are the highlights from Monday’s analyst blog:

NVIDIA Corporationhas consistently posted 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 TSMCor TSMC, Micron Technology Corporation and Super Micro Computer Corporationperformed significantly better than the broader 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.

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.

As artificial intelligence spurs demand for hardware, AMD stands to benefit. The company is seeing growing demand from AI customers for its data center building block solutions (DCBBS). This is because it is a complete package that combines integrated servers, networking, storage and related services. DCBBS enables customers to deploy AI infrastructure faster and more cost-effectively.

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Supermicro CEO Charles Liang expects the company to capitalize on the next wave of artificial intelligence demand by expanding its server and storage capabilities. As a result, Supermicro expects revenue to reach $12.3 billion in the third quarter of fiscal 2026, following revenue of $12.7 billion in the second quarter of fiscal 2026, according to ir.supermicro.com. Full-year net sales are expected to be at least $40 billion. Supermicro’s expected earnings growth rates for the current quarter and full year are 103.2% and 7.8% respectively.

While Supermicro has a Zacks Rank #3 (Hold), TSMC and Micron have a Zacks Rank #1 (Strong Buy). you can see The complete list of today’s Zacks #1 Rank stocks is here.

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