July 18, 2025

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Apple, Nvidia Chip Demand Boosts TSMC; Microsoft Azure AI Growth

The AI sector is currently experiencing significant growth and shifts, impacting various companies and investment strategies. TSMC, a major chip producer for companies like Apple and Nvidia, is seeing substantial profit increases, reporting a 60% jump in second-quarter profit and raising its full-year revenue growth forecast to around 30% due to high AI demand. TSMC anticipates revenue between $31.8 billion and $33 billion in the third quarter. Despite this surge, TSMC is wary of potential U.S. tariffs and currency fluctuations. Meanwhile, Micron Technology's stock is gaining appeal due to its growth in AI, with expectations to capture a quarter of the high-bandwidth memory (HBM) market by year's end; this market could reach $100 billion by 2030, potentially adding $25 billion to Micron's revenue. Investors are also considering Microsoft as a key AI player, leveraging its Azure cloud service, which competes with Amazon Web Services and Google Cloud, to facilitate AI models like ChatGPT, Llama, and Grok; its Intelligent Cloud division grew 21% in Q3 FY 2025. However, the rise of AI stocks may overshadow other market opportunities, as the Nasdaq Composite, which includes a broader range of stocks, has outperformed the Nasdaq 100. In other developments, Scale AI, an AI data-labeling company, is laying off 200 employees following a $14.3 billion investment from Meta, while Elon Musk's xAI aims to raise $5 billion and projects $500 million in revenue this year, integrating its chatbot Grok with X (formerly Twitter).

Key Takeaways

  • TSMC's profits jumped 60% in Q2 due to high AI chip demand, leading to a raised revenue forecast of approximately 30% for the year.
  • Micron Technology expects to capture 25% of the HBM market by year's end, potentially adding $25 billion in revenue as the HBM market could reach $100 billion by 2030.
  • Microsoft's Azure cloud service is hosting leading AI models like ChatGPT, Llama, and Grok, contributing to a 21% growth in its Intelligent Cloud division in Q3 FY 2025.
  • Despite the surge in AI stocks like Nvidia and Microsoft, the Nasdaq Composite has outperformed the Nasdaq 100, indicating broader market opportunities.
  • Scale AI is laying off 200 employees after a $14.3 billion investment from Meta, signaling market shifts in the AI data-labeling sector.
  • Elon Musk's xAI is seeking to raise $5 billion and anticipates $500 million in revenue this year, leveraging its integration with X (formerly Twitter) for its chatbot Grok.
  • TSMC anticipates revenue between $31.8 billion and $33 billion in the third quarter.
  • TSMC's CEO C.C. Wei expects revenue to rise about 30% in U.S. dollars.
  • TSMC plans to invest $38-42 billion in capacity upgrades this year.
  • TSMC reported net profit for April-June was T$398.3 billion, up 60.7%.

Micron stock soars with AI growth and attractive valuation

Micron Technology's stock is appealing because it's growing fast with AI and is priced well. The company makes memory and storage chips used in AI, PCs, and smartphones. Micron is expected to grab a quarter of the high-bandwidth memory (HBM) market by year's end. The HBM market could reach $100 billion by 2030, potentially adding $25 billion to Micron's revenue. Investors can buy Micron stock at just 22 times earnings.

Micron stock soars with AI growth and attractive valuation

Micron Technology's stock is appealing because it's growing fast with AI and is priced well. The company makes memory and storage chips used in AI, PCs, and smartphones. Micron is expected to grab a quarter of the high-bandwidth memory (HBM) market by year's end. The HBM market could reach $100 billion by 2030, potentially adding $25 billion to Micron's revenue. Investors can buy Micron stock at just 22 times earnings.

Micron stock soars with AI growth and attractive valuation

Micron Technology's stock is appealing because it's growing fast with AI and is priced well. The company makes memory and storage chips used in AI, PCs, and smartphones. Micron is expected to grab a quarter of the high-bandwidth memory (HBM) market by year's end. The HBM market could reach $100 billion by 2030, potentially adding $25 billion to Micron's revenue. Investors can buy Micron stock at just 22 times earnings.

TSMC profits hit record amid AI boom but tariffs are a concern

TSMC, a major AI chip producer, reported a 60% jump in second-quarter profit. The company expects strong revenue in the third quarter, driven by AI demand. However, TSMC is cautious about the future due to potential U.S. tariffs and a strong Taiwan dollar. TSMC's customers include Apple and Nvidia. The company is investing in U.S. plants, including one in Arizona.

TSMC profits surge on AI demand but warns of tariff impact

TSMC reported record quarterly profits thanks to strong AI chip demand. The company predicts sales will continue to rise in the third quarter. TSMC also noted Nvidia can still sell its H20 AI chip to China. However, TSMC warns that U.S. tariffs could hurt future earnings. Net profit for April-June was T$398.3 billion, up 60.7%.

AI stocks soar but hidden gems offer better market opportunities

AI stocks like Nvidia and Microsoft have boosted the market, but focusing only on them may cause investors to miss other opportunities. The Nasdaq 100 rose 34% since April, but the Nasdaq Composite, which includes more stocks, gained 36%. Healthcare, financials, and smaller tech companies helped the Nasdaq Composite perform better. The Fidelity Nasdaq Composite Index ETF (ONEQ) offers exposure to a wider range of companies.

Is Microsoft the best AI stock to buy now

Microsoft is a big player in AI, facilitating AI models through its cloud business. Microsoft Azure is a top cloud service, competing with Amazon Web Services and Google Cloud. Azure hosts leading AI models like ChatGPT, Llama, and Grok. Microsoft's Intelligent Cloud division grew 21% in Q3 FY 2025. Microsoft's stock is expensive compared to peers like Nvidia and Meta.

TSMC raises revenue outlook amid strong AI chip demand

TSMC increased its full-year revenue growth forecast to around 30% due to high AI demand. CEO C.C. Wei expects revenue to rise about 30% in U.S. dollars. TSMC works with major tech companies like Apple and Nvidia. The company anticipates revenue between $31.8 billion and $33 billion in the third quarter. TSMC's second-quarter earnings and revenue exceeded expectations.

Scale AI lays off 200 after Meta investment

Scale AI, an AI data-labeling company, is laying off 200 employees. This follows a $14.3 billion investment from Meta. Scale AI will also end work with 500 global contractors. The layoffs are due to rapid scaling and market shifts, according to CEO Jason Droege. Meta's investment gives it influence over Scale AI, causing some to cut ties.

Can Elon Musk's xAI become the Fox News of AI

Elon Musk's xAI is trying to raise $5 billion, potentially from his own companies like SpaceX and Tesla. xAI's AI business is expected to generate $500 million in revenue this year. xAI also has a deal with the Pentagon for up to $200 million. xAI's biggest advantage is its integration with X, formerly Twitter. xAI's chatbot, Grok, could appeal to those who view mainstream AI as too 'woke'.

TSMC reignites AI boom with strong revenue forecast

TSMC raised its 2025 revenue growth forecast to around 30%, signaling strong AI demand. CEO C.C. Wei says AI-related orders remain strong despite tariff and currency concerns. High-performance computing now makes up 60% of TSMC's revenue. The company plans to invest $38-42 billion in capacity upgrades this year. TSMC's net income jumped 61% last quarter.

Sources

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