Connect with us

AI Insights

Prediction: This Magnificent Artificial Intelligence (AI) Stock Will Skyrocket to New Highs in July

Published

on


Taiwan Semiconductor Manufacturing (TSM 0.75%) stock has jumped sharply in the past three months, clocking impressive gains of 37% during this period, and there is a good chance that the foundry giant will jump to new highs in July.

TSMC stock is currently trading at the higher end of its 52-week range following its recent surge. The company is expected to release its second-quarter results on July 17, and there is a good chance that it could hit new 52-week highs after it releases its results.

Let’s look at the reasons why that may happen.

Image source: Getty Images.

TSMC’s improving foundry market share points toward another solid quarter

TSMC is the world’s largest semiconductor foundry, and the company is becoming more dominant in this market with each passing quarter. According to market research firm TrendForce, TSMC’s share of the global foundry market increased to almost 68% in the first quarter of 2025. That’s an improvement of six percentage points when compared to the year-ago period.

There is a good chance that TSMC’s foundry market share gains continued in the year’s Q2, as evident by the terrific increase in the company’s monthly revenue figures. TSMC’s April revenue shot up an impressive 48% year over year, while its May revenue was up by almost 40%. Consensus estimates are projecting TSMC’s Q1 revenue to increase by 37% from the year-ago period.

The company’s revenue growth in the first couple of months of the quarter suggests that it could end up exceeding analysts’ expectations when it releases its results. That won’t be surprising as TSMC management recently pointed out that the demand for the artificial intelligence (AI) chips that it manufactures for multiple chipmakers such as Nvidia, AMD, Broadcom, Marvell Technology, and others has been outpacing supply.

As a result, TSMC has been aggressively building more fabrication plants so that it can capitalize on the booming demand for AI chips. The company is on track to construct nine new production facilities in 2025. That’s not surprising as it is witnessing a surge in orders for advanced chips from the likes of Nvidia and Apple, which are queueing up to tap TSMC’s facilities to fabricate AI chips.

So, this combination of an increase in capacity and stronger demand for its chips could be enough for TSMC to exceed Wall Street’s Q2 expectations when it releases its results this month. What’s more, TSMC is reportedly increasing the prices of its current and next-generation process nodes. So there is a good chance that the company’s margin profile could continue to improve going forward and lead to stronger growth in its earnings.

A big reason why customers can be expected to pay a premium for the chips fabricated by TSMC is because of the technology advantage it enjoys over rivals, which enables the company to produce chips that are not only more powerful but also power efficient. That’s the reason why TSMC is forecasting an operating margin of 48% for Q2, which would be a big jump over the year-ago period’s reading of 42.5%.

Not surprisingly, analysts are expecting TSMC’s earnings to jump by 54% in the current quarter to $2.28 per share. However, stronger volume shipments thanks to the factors discussed above, as well as the price hikes, could pave the way for a stronger jump in TSMC’s quarterly earnings.

Moreover, the persistently strong demand for AI chips, which is evident from the recent quarterly results posted by some of TSMC’s customers that point toward an acceleration in their AI-related growth in the current quarter, is an indication that its outlook could also be solid. All this could pave the way for more upside in TSMC stock, which is why it would be a good idea to buy it before its upcoming quarterly report when we take into account its incredibly attractive valuation.

The simplest reason to buy this stock right now

When we consider the solid report that TSMC is on track to deliver in a few weeks, and importantly, its ability to sustain elevated growth levels over the long run, buying the stock right now is a no-brainer. After all, TSMC is trading at just 27 times sales, which is a discount to the tech-laden Nasdaq-100 index’s price-to-earnings ratio of 32.

The forward earnings multiple of 24 is even more attractive, especially considering that its bottom-line growth rate is expected to accelerate in the future as well.

TSM EPS Estimates for Current Fiscal Year Chart

TSM EPS Estimates for Current Fiscal Year data by YCharts.

So, investors can consider buying this AI stock going into its quarterly report as stronger-than-expected results and outlook are likely to help TSMC jump to new highs.

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and Marvell Technology. The Motley Fool has a disclosure policy.



Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

AI Insights

Do AI systems socially interact the same way as living beings?

Published

on


Key takeaways

  • A new study that compares biological brains with artificial intelligence systems analyzed the neural network patterns that emerged during social and non-social tasks in mice and programmed artificial intelligence agents.
  • UCLA researchers identified high-dimensional “shared” and “unique” neural subspaces when mice interact socially, as well as when AI agents engaged in social behaviors.
  • Findings could help advance understanding of human social disorders and develop AI that can understand and engage in social interactions.

As AI systems are increasingly integrated into from virtual assistants and customer service agents to counseling and AI companions, an understanding of social neural dynamics is essential for both scientific and technological progress. A new study from UCLA researchers shows biological brains and AI systems develop remarkably similar neural patterns during social interaction.

The study, recently published in the journal Nature, reveals that when mice interact socially, specific brain cell types create synchronize in “shared neural spaces,” and artificial intelligence agents develop analogous patterns when engaging in social behaviors.     

The new research represents a striking convergence of neuroscience and artificial intelligence, two of today’s most rapidly advancing fields. By directly comparing how biological brains and AI systems process social information, scientists can now better understand fundamental principles that govern social cognition across different types of intelligent systems. The findings could advance understanding of social disorders like autism while simultaneously informing the development of more sophisticated, socially  aware AI systems.  

This work was supported in part by , the National Science Foundation, the Packard Foundation, Vallee Foundation, Mallinckrodt Foundation and the Brain and Behavior Research Foundation.

Examining AI agents’ social behavior

A multidisciplinary team from UCLA’s departments of neurobiology, biological chemistry, bioengineering, electrical and computer engineering, and computer science across the David Geffen School of Medicine and UCLA Samueli School of Engineering used advanced brain imaging techniques to record activity from molecularly defined neurons in the dorsomedial prefrontal cortex of mice during social interactions. The researchers developed a novel computational framework to identify high-dimensional “shared” and “unique” neural subspaces across interacting individuals. The team then trained artificial intelligence agents to interact socially and applied the same analytical framework to examine neural network patterns in AI systems that emerged during social versus non-social tasks.

The research revealed striking parallels between biological and artificial systems during social interaction. In both mice and AI systems, neural activity could be partitioned into two distinct components: a “shared neural subspace” containing synchronized patterns between interacting entities, and a “unique neural subspace” containing activity specific to each individual.

Remarkably, GABAergic neurons — inhibitory brain cells that regulate neural activity —showed significantly larger shared neural spaces compared with glutamatergic neurons, which are the brain’s primary excitatory cells. This represents the first investigation of inter-brain neural dynamics in molecularly defined cell types, revealing previously unknown differences in how specific neuron types contribute to social synchronization.

When the same analytical framework was applied to AI agents, shared neural dynamics emerged as the artificial systems developed social interaction capabilities. Most importantly, when researchers selectively disrupted these shared neural components in artificial systems, social behaviors were substantially reduced, providing the direct evidence that synchronized neural patterns causally drive social interactions.

The study also revealed that shared neural dynamics don’t simply reflect coordinated behaviors between individuals, but emerge from representations of each other’s unique behavioral actions during social interaction.

“This discovery fundamentally changes how we think about social behavior across all intelligent systems,” said Weizhe Hong, professor of neurobiology, biological chemistry and bioengineering at UCLA and lead author of the new work. “We’ve shown for the first time that the neural mechanisms driving social interaction are remarkably similar between biological brains and artificial intelligence systems. This suggests we’ve identified a fundamental principle of how any intelligent system — whether biological or artificial — processes social information. The implications are significant for both understanding human social disorders and developing AI that can truly understand and engage in social interactions.”

Continuing research for treating social disorders and training AI

The research team plans to further investigate shared neural dynamics in different and potentially more complex social interactions. They also aim to explore how disruptions in shared neural space might contribute to social disorders and whether therapeutic interventions could restore healthy patterns of inter-brain synchronization. The artificial intelligence framework may serve as a platform for testing hypotheses about social neural mechanisms that are difficult to examine directly in biological systems. They also aim to develop methods to train socially intelligent AI.

The study was led by UCLA’s Hong and Jonathan Kao, associate professor of electrical and computer engineering. Co-first authors Xingjian Zhang and Nguyen Phi, along with collaborators Qin Li, Ryan Gorzek, Niklas Zwingenberger, Shan Huang, John Zhou, Lyle Kingsbury, Tara Raam, Ye Emily Wu and Don Wei contributed to the research.



Source link

Continue Reading

AI Insights

I tried recreating memories with Veo 3 and it went better than I thought, with one big exception

Published

on


If someone offers to make an AI video recreation of your wedding, just say no. This is the tough lesson I learned when I started trying to recreate memories with Google’s Gemini Veo model. What started off as a fun exercise ended in disgust.

I grew up in the era before digital capture. We took photos and videos, but most were squirreled away in boxes that we only dragged out for special occasions. Things like the birth of my children and their earliest years were caught on film and 8mm videotape.



Source link

Continue Reading

AI Insights

That’s Our Show

Published

on


July 07, 2025

This is the last episode of the most meaningful project we’ve ever been part of.

The Amys couldn’t imagine signing off without telling you why the podcast is ending, reminiscing with founding producer Amanda Kersey, and fitting in two final Ask the Amys questions. HBR’s Maureen Hoch is here too, to tell the origin story of the show—because it was her idea, and a good one, right?

Saying goodbye to all the women who’ve listened since 2018 is gut-wrenching. If the podcast made a difference in your life, please bring us to tears/make us smile with an email: womenatwork@hbr.org.

If and when you do that, you’ll receive an auto reply that includes a list of episodes organized by topic. Hopefully that will direct you to perspectives and advice that’ll help you make sense of your experiences, aim high, go after what you need, get through tough times, and take care of yourself. That’s the sort of insight and support we’ve spent the past eight years aiming to give this audience, and you all have in turn given so much back—to the Women at Work team and to one another.



Source link

Continue Reading

Trending