The AI sector is heating up, driving significant activity across various companies. TSMC is experiencing substantial growth, with revenue up nearly 27% in June and 40% year-to-date, fueled by demand from AI chip clients like Nvidia, Tesla, Apple, and Broadcom. Morgan Stanley recommends buying TSMC stock, anticipating an increased revenue forecast due to strong AI demand. AMD is also poised for growth, with Bank of America setting a $175 price target, confident in AMD's AI strategy and data center GPU market growth. AMD plans to ship $400–$600 million in data center GPUs per quarter in late 2025 and 2026, pending U.S. government approval for exports, potentially including China. Palantir's stock has reached record highs, almost doubling this year, as AI spending increases, and analysts anticipate further gains from the Trump administration's AI focus. Qualcomm's stock volume has surged to 10 billion shares amid interest in its AI and 5G initiatives, despite a $75 million settlement affecting the company. Goldman Sachs highlights Cadence Design Systems and Broadcom as AI chip stocks to watch, alongside Nvidia, giving Cadence a Buy rating with a $380 price target. Thinking Machines, led by ex-OpenAI executive Mira Murati, secured $2 billion in funding, led by Andreessen Horowitz with participation from Nvidia and Thrive Capital, to develop multimodal AI and release an open-source component. Furthermore, Larry Ellison of Oracle has surpassed Mark Zuckerberg in wealth, driven by Oracle's $3 billion AI investments in Europe and involvement in the $500 billion Stargate AI infrastructure project. AMD's new MI350 series of AI accelerators is expected to launch, potentially boosting its stock along with TSMC's in late 2025.
Key Takeaways
- TSMC's revenue increased by almost 27% in June and 40% year-to-date, driven by AI chip demand from companies like Nvidia, Tesla, and Apple.
- Bank of America projects AMD can ship $400–$600 million in data center GPUs per quarter in late 2025 and 2026.
- Palantir's stock has almost doubled this year due to increased enterprise and government AI spending.
- Thinking Machines, led by a former OpenAI executive, raised $2 billion to build multimodal AI, with Nvidia participating in the funding round.
- AMD plans to launch its new MI350 series of AI accelerators.
- Larry Ellison's wealth increased by nearly $60 billion in 2025 due to Oracle's AI investments.
- Oracle is investing $3 billion in Europe and is involved in the $500 billion Stargate AI infrastructure project.
- Goldman Sachs suggests Cadence Design Systems and Broadcom as AI chip stocks to watch, giving Cadence a Buy rating with a $380 price target.
- Qualcomm's stock trading volume increased to 10 billion shares due to interest in its AI and 5G plans.
- Morgan Stanley recommends buying TSMC stock before its earnings report, expecting an increased revenue forecast due to strong AI demand.
AMD and TSMC Stocks Could Surge in Late 2025 Due to AI
AMD and TSMC stocks may increase in value in the second half of 2025. AMD plans to launch its new MI350 series of AI accelerators. TSMC should see more demand for its chip-making services as companies release new chip designs. Both the S&P 500 and Nasdaq Composite indexes rose about 5% in the first half of 2025.
Taiwan Semiconductor Sees Big Growth Thanks to AI Chip Demand
Taiwan Semiconductor Manufacturing (TSMC) is a top stock because it supports many companies in the AI business. TSMC makes chips for Nvidia, Tesla, Broadcom, and Apple. TSMC's revenue increased by almost 27% in June and 40% so far this year. TSMC is working on new chip technology, like 2nm and 1.6nm nodes, to stay ahead.
Goldman Sachs suggests Cadence and Broadcom as AI chip stocks to watch
Goldman Sachs suggests investors look at Cadence Design Systems and Broadcom as AI chip stocks besides Nvidia. Cadence Design Systems helps tech companies by providing software and services, including AI-powered applications. Broadcom makes AI-capable chips and ASICs used in cloud systems and data centers. Goldman Sachs gives Cadence a Buy rating with a $380 price target.
Qualcomm Stock Volume Rises Amid 5G and AI Interest
Qualcomm's stock trading volume increased to 10 billion shares due to interest in its AI and 5G plans. Qualcomm is working on new automotive partnerships and has patents in AI and machine learning. However, a $75 million settlement related to anticompetitive conduct still affects the company. The settlement is tied to a drop in share price in January 2017.
Palantir Stock Hits Record Highs as AI Spending Increases
Palantir's stock reached a new high because the company is expected to gain from increased AI spending. Palantir's CEO attended an energy and AI summit with President Trump. Analysts believe Palantir will benefit from the Trump administration's focus on AI. Palantir stock has almost doubled this year, driven by enterprise and government AI spending.
Bank of America Predicts AMD Stock Surge Due to AI
Bank of America analyst Vivek Arya increased the price target for AMD stock to $175. Arya is confident in AMD's AI strategy and its growth in the data center GPU market. AMD plans to resume shipments after getting U.S. government approval. Arya estimates AMD can ship $400–$600 million in data center GPUs per quarter in late 2025 and 2026.
AMD Stock May Grow with US-China Trade and AI Investment
AMD's stock increased after the U.S. government allowed Nvidia to export AI chips to China. Investors hope AMD will also get approval to export its AI processors. AMD has designed chips to meet export rules. AMD's revenue and profits have been strong, driven by its data center and AI segments.
Morgan Stanley Recommends Buying TSMC Stock Before Earnings Report
Morgan Stanley suggests buying Taiwan Semiconductor Manufacturing (TSMC) stock before its earnings report. They believe the chipmaker will likely increase its revenue forecast for the year. This positive outlook is driven by strong demand for AI technology.
Larry Ellison Passes Zuckerberg as Oracle Invests Heavily in AI
Larry Ellison, Oracle's co-founder, is now the world's second-richest person, surpassing Mark Zuckerberg. Ellison's wealth increased by nearly $60 billion in 2025 due to Oracle's AI investments. Oracle is investing $3 billion in Europe and is involved in President Trump's Stargate initiative. The Stargate project will invest $500 billion in AI infrastructure.
Thinking Machines Raises $2 Billion for AI Development
Thinking Machines, a startup led by former OpenAI executive Mira Murati, has raised $2 billion. The company will use the funding to build multimodal AI. Thinking Machines plans to release its first product soon, including an open-source part for researchers. The funding round was led by Andreessen Horowitz, with participation from Nvidia and Thrive Capital.
Sources
- 2 Artificial Intelligence (AI) Stocks That Could Soar in the Second Half of 2025 @themotleyfool #stocks $AMD $TSM
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- ‘Watch AMD Stock Surge,’ Top BofA Analyst Boosts Price Target on Strong AI Momentum
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- TSM: Morgan Stanley Says Buy Ahead of Earnings on Strong AI Demand
- Larry Ellison surpasses Mark Zuckerberg to become world's second-richest after Oracle doubles down on AI investment
- Thinking Machines Raises $2 Billion Amid AI Deal Boom