The Zacks Analyst Blog Highlights Micron Technology, FormFactor, Texas Instruments and Taiwan Semiconductor Manufacturing

For Immediate ReleaseChicago, IL – July 1, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Micron Technology, Inc. MU, FormFactor, Inc. FORM, Texas Instruments Inc. TXN and Taiwan Semiconductor Manufacturing Co. TSM.Here are highlights from Tuesday’s Analyst Blog:4 Semiconductor Stocks to Buy Right Now to Rise the AI Capex BoomArtificial intelligence (AI) has become one of the biggest investment themes in the technology sector, and the rapid rise in AI infrastructure spending is creating major opportunities for semiconductor companies. Large cloud providers and hyperscalers are investing heavily to expand their AI capabilities, which is driving demand for advanced chips, memory solutions and semiconductor manufacturing services.Amazon, Microsoft, Alphabet and Meta Platforms are expected to spend around $700 billion in capital expenditures in 2026. The majority of that spending is expected to go toward AI infrastructure, including data centers, networking equipment, advanced processors and memory solutions. This wave of investment is creating a strong demand environment for companies that supply the semiconductor industry.According to Gartner, worldwide AI-related spending is expected to increase 47% and reach $2.59 trillion in 2026. The expansion is not limited to cloud companies. Enterprises across industries are deploying AI applications, which require powerful processors, high-bandwidth memory (HBM), advanced packaging and sophisticated semiconductor equipment.As AI workloads become larger and more complex, chipmakers are becoming some of the biggest beneficiaries of this spending cycle. Companies that provide memory products, chip manufacturing services, testing solutions and analog semiconductors are seeing growing opportunities. Investors looking to benefit from the AI capex boom should consider semiconductor companies that have strong technology positions and long-term growth drivers.Micron Technology, Inc., FormFactor, Inc., Texas Instruments Inc. and Taiwan Semiconductor Manufacturing Co. are four such semiconductor stocks that appear well-positioned to benefit from the ongoing AI capex boom. These stocks have a favorable combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or #2 (Buy), offering solid investment opportunities.Micron Technology: AI Memory Demand Drives GrowthMicron Technology is one of the leading suppliers of DRAM and NAND memory and has emerged as a key player in the HBM market. HBM is critical for AI accelerators because it enables faster data processing and improves performance in large language models and generative AI applications.The strength of this demand is evident in Micron Technology's order book. The company has already sold out its HBM supply for the calendar year 2026, while a significant portion of 2027 production is already committed through long-term customer agreements.This favorable supply-demand environment is supporting higher pricing and stronger margins. Beyond HBM, demand for conventional DRAM used in AI servers continues to rise. As hyperscalers expand AI data centers and enterprises deploy advanced AI workloads, Micron Technology remains one of the most direct beneficiaries of the growing AI memory market.In the third quarter of fiscal 2026, MU's revenues surged 346% year over year, while non-GAAP earnings per share (EPS) jumped 1,200%. The Zacks Consensus Estimate for fiscal 2026 revenues and EPS suggests a year-over-year increase of approximately 225% and 675%, respectively. The consensus mark for fiscal 2026 earnings has been revised upward over the past seven days.Currently, Micron Technology sports a Zacks Rank #1 and has a Growth Score of A. You can see the complete list of today's Zacks #1 Rank stocks here.FormFactor: Benefiting From Advanced Chip Testing DemandFormFactor is an important supplier of semiconductor testing and measurement solutions. Its products play a critical role in the development and production of advanced semiconductors. AI processors and memory products have become increasingly complex, requiring extensive testing to ensure performance and reliability. FormFactor's probe cards and engineering systems help semiconductor companies validate advanced chips before commercial production.The growing adoption of HBM and advanced packaging technologies is creating additional opportunities for the company. AI chips often combine multiple components within a single package, increasing testing requirements throughout the manufacturing process.FormFactor serves many leading semiconductor and memory manufacturers, allowing it to benefit directly from rising AI investments. As advanced chip production expands, the demand for testing solutions is expected to remain strong. With AI applications requiring more sophisticated semiconductors, FormFactor appears well-positioned to benefit from the increasing complexity of chip manufacturing.In the first quarter of 2026, FormFactor's revenues and adjusted EPS increased 32% and 143%, respectively, on a year-over-year basis. The Zacks Consensus Estimate for 2026 revenues and EPS suggests a year-over-year jump of 22% and 85%, respectively. The consensus mark for 2026 earnings has been revised upward over the past 60 days.FormFactor sports a Zacks Rank #1 and has a Growth Score of B at present.Texas Instruments: Analog Leadership to Aid Long-Term GrowthTexas Instruments is seeing rising momentum in the data center market, which has become an important growth driver for the company. It does not compete directly in high-end AI graphics processors. Instead, it supplies analog and embedded chips that are essential for data center infrastructure. These chips help manage power delivery, battery backup systems, cooling equipment, motor controls, signal conversion and server connectivity. As modern data centers become larger and more power-intensive, the need for efficient power management solutions increases.In 2025, Texas Instruments' data center business reached an annual run rate of about $1.2 billion, growing more than 50% year over year. In the first quarter of 2026, revenues from the data center end market surged 90% year over year and 25% sequentially. As cloud and AI workloads continue to rise, Texas Instruments' strong portfolio and manufacturing scale position it well to benefit from sustained demand for efficient, high-performance power solutions in data center infrastructure.One of TXN's biggest strengths is its manufacturing advantage. The company continues expanding its 300-millimeter wafer capacity, which supports lower production costs and stronger margins over time. In the first quarter of 2026, non-GAAP gross margin expanded 120 basis points (bps) year over year to 58%, while non-GAAP operating margin improved 490 bps to 37.5%.In the first quarter, Texas Instruments' revenues and non-GAAP EPS increased approximately 19% and 31%, respectively, on a year-over-year basis. The Zacks Consensus Estimate for 2026 revenues and EPS suggests a year-over-year rise of 17% and 41%, respectively. The consensus mark for 2026 earnings has been revised upward over the past 60 days.Currently, Texas Instruments carries a Zacks Rank #2 and has a Growth Score of B.Taiwan Semiconductor: The Backbone of AI Chip ManufacturingTaiwan Semiconductor, also known as TSMC, stands at the center of the AI revolution. The company is the world's largest contract chip manufacturer and produces advanced chips for many leading technology companies.AI chip designers depend heavily on TSMC's advanced manufacturing technologies. The company's leading-edge 3-nanometer and 5-nanometer processes are widely used for high-performance computing and AI applications. Taiwan Semiconductor's advanced packaging technologies have also become increasingly important for AI processors.High-performance computing has become one of TSMC's largest revenue drivers. Strong demand from AI customers continues to support capacity utilization and revenue growth. Major technology companies, including NVIDIA, Broadcom, Advanced Micro Devices and QUALCOMM, rely on Taiwan Semiconductor to manufacture their most advanced chips.In the first quarter of 2026, Taiwan Semiconductor's revenues in U.S. dollars surged approximately 41% year over year, while EPS jumped 65%. The Zacks Consensus Estimate for 2026 revenues and EPS suggests a year-over-year increase of 32% and 44%, respectively. The consensus mark for 2026 earnings has been revised upward over the past seven days.Taiwan Semiconductor carries a Zacks Rank #2 and has a Growth Score of B at present.Free: Instant Access to Zacks' Market-Crushing StrategiesSince 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.Get all the details here >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                      https://www.zacks.com                                                   Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. 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