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Alphabet GOOGL is set to report third-quarter 2026 results on Oct. 28. For third-quarter 2026, the Zacks Consensus Estimate for earnings is pegged at $2.94 per share, up by a penny over the past 30 days, and indicating 2.44% year-over-year growth. The consensus mark for third-quarter revenues is pegged at $111.64 billion, implying growth of 27.63% from the year-ago quarter's reported figure. Alphabet Inc. price-eps-surprise | Alphabet Inc. Quote Alphabet has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in all the trailing four quarters, with the average surprise being 86.65%. Image Source: Zacks Investment Research Let's see how things have shaped up for the upcoming announcement: Alphabet's third-quarter 2026 results are expected to have benefited from accelerating Google Cloud adoption, supported by strong demand for AI infrastructure, enterprise AI solutions and core Google Cloud Platform (GCP) services. In the second quarter of 2026, cloud revenues surged 82% year over year to $24.77 billion, while cloud backlog reached $514 billion, increasing by more than $50 billion sequentially. Cloud revenues are also expected to have benefited from expanding customer relationships, rising consumption and demand for Google's custom Tensor Processing Units (TPUs) systems. Google Search & Other is expected to have remained a key revenue contributor in the third quarter, driven by increasing search activity, healthy advertiser spending and AI-powered advertising improvements. In the second quarter of 2026, Search & Other revenues increased 17% year over year to $63.27 billion, primarily supported by retail and financial services advertisers. AI Overviews and AI Mode have been driving incremental search queries, while AI Max and Performance Max are helping advertisers improve campaign effectiveness. However, GOOGL cautioned that third-quarter growth comparisons would become tougher as Alphabet laps the acceleration in Search performance that began in third-quarter 2025. Alphabet's third-quarter 2026 performance is likely to have benefited from growth in YouTube advertising, supported by direct-response campaigns, brand advertising, Shorts and connected television. YouTube advertising revenues increased 13% year over year to $11.06 billion in the second quarter of 2026, reflecting strength across direct-response and brand campaigns. AI-powered Demand Gen campaigns, creator partnerships and new advertising formats are improving advertisers' ability to reach audiences across YouTube and Shorts. The growing popularity of connected television and increasingly effective shopping experiences are also expected to have supported advertising monetization. Increasing adoption of Gemini across consumer and enterprise applications is expected to have supported Alphabet's third-quarter performance. In the second quarter of 2026, Gemini API usage reached approximately 22 billion tokens per minute, up from more than 16 billion in the preceding quarter. The Gemini application reached 950 million monthly active users, while more than 9 million developers were building with Google's models each month. Strong adoption of Gemini Enterprise, AI development tools and model APIs is creating additional monetization opportunities across Google Cloud, Workspace and other services. However, higher depreciation, energy expenses, data center operating costs and AI-related hiring are expected to have pressured operating margins. GOOGL also anticipated modest near-term margin pressure from using third-party cloud capacity in the third quarter. Alphabet's shares have climbed 3.8% year to date (YTD), underperforming the broader Zacks Computer & Technology sector's return of 18%. Alphabet shares have underperformed peers including Apple AAPL, Amazon AMZN and Microsoft MSFT over the same timeframe. Shares of Apple, Amazon and Microsoft have returned 28%, 8.6% and 7.8%, respectively, YTD. Image Source: Zacks Investment Research GOOGL shares are overvalued, as suggested by Value Score C. Currently, GOOGL is trading at a premium, with a forward 12-month price/sales of 7.38X compared with the broader sector's 5.72X and Amazon's 2.91X. However, Alphabet shares trade at a discount compared with Microsoft's 9.37X and Apple's 9.70X. Image Source: Zacks Investment Research Alphabet's prospects are supported by its integrated AI portfolio spanning custom accelerators, Gemini models, data analytics, cybersecurity and enterprise applications. Google management has highlighted more than 17 product lines generating over $1 billion each in revenue. The company is gaining traction across enterprise AI infrastructure, BigQuery, Gemini Enterprise and Workspace, enabling opportunities to expand customer spending. Alphabet also highlighted that customers using Google's AI products consume 1.8 times as many products as non-AI customers, indicating significant cross-selling potential. Growing demand for AI training and inference represents a major long-term opportunity for Alphabet's infrastructure business. The company's custom TPUs, Axion CPUs and NVIDIA GPU offerings provide customers with multiple computing options. Alphabet is also commercializing TPU systems through cloud subscriptions, direct hardware sales and neocloud partnerships. Increasing enterprise adoption of agentic AI is expected to strengthen Alphabet's long-term growth prospects. Gemini Enterprise enables organizations to build autonomous agents, analyze proprietary data, automate business processes and improve operational efficiency. Alphabet has stated that more than 90% of Fortune 100 companies have been using Gemini Enterprise, and the platform is gaining adoption across financial services, retail, insurance and other industries. Alphabet's third-quarter 2026 performance is expected to have benefited from robust Google Cloud demand, growing AI adoption, sustained Search advertising momentum and improving YouTube monetization. The company's expanding Cloud backlog, growing enterprise customer base and increasing adoption of Gemini-powered solutions are encouraging. Despite a premium valuation, Alphabet's full-stack AI strategy, expanding TPU business, enterprise AI adoption and new advertising opportunities offer plenty of growth opportunities for investors. Alphabet currently has a Zacks Rank #2 (Buy), suggesting that it may be wise to buy the stock ahead of third-quarter earnings. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- Morgan Stanley expects Apple to forecast low-to-mid single-digit year-over-year revenue growth for the December quarter. - The firm expects limited earnings-per-share upside with Apple stock near record highs - Apple reportedly said it will offer limited quantities of its foldable iPhone Duo to walk-in customers on Friday after online preorders sold out within minutes. Apple Inc. (AAPL) faces a "slightly challenging near-term setup" heading into earnings, according to Morgan Stanley, which expects limited upside to quarterly results and potentially softer-than-expected holiday-quarter guidance. The firm maintained its 'Overweight' rating and $355 price target, implying approximately 4.6% potential upside from Apple's Tuesday closing price of $339.50, according to a note cited by TheFly. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox As of this writing, AAPL stock was trading 1% higher, pushing the company's market cap to above the $5 trillion mark once more. Morgan Stanley expects Apple to report September-quarter results broadly in line with expectations and forecast low-to-mid single-digit year-over-year revenue growth for the December quarter. That outlook would fall slightly below the firm's and Wall Street's estimates but align with expectations among institutional investors on the buy side. The firm also expects December-quarter iPhone revenue and gross margins to come in slightly below Street forecasts. With Apple shares trading near record highs and limited earnings-per-share (EPS) upside anticipated, Morgan Stanley said the upcoming results are unlikely to "tip the scales for bears or bulls." Apple's latest reported quarterly revenue rose 16% year over year to $109.4 billion, while gross margin reached 50.1%, including a roughly two-percentage-point benefit from tariff refunds. Separately, Apple said Wednesday that only limited quantities of its new foldable iPhone would be available to walk-in customers when the device launches on Friday, October 23, 2026. A Reuters report quoted Apple saying, "Apple Stores will ‌have ⁠limited iPhone Duo available for walk-in customers, and we're working hard to get this revolutionary new product into customers' hands as quickly as possible." Initial online preorders sold out within minutes, pushing delivery estimates for some customers into January 2027. According to 9to5Mac, Apple has also restricted purchases to two devices per customer across multiple markets. Loop Capital analyst Ananda Baruah downgraded Apple to 'Hold' from 'Buy' on Tuesday and cut its price target on the stock $330 from $370. The firm said Apple had reduced planned September- and December-quarter iPhone shipments by 10%, per TheFly. Apple is set to report fiscal fourth-quarter earnings on November 2, with investors focused on iPhone sales, profit margins and potential pressure from rising component costs. On Stocktwits, retail investors' sentiment around AAPL stock remained 'extremely bearish'. So far this year, AAPL shares have rallied over 26%, the best-performing stock among the Magnificent Seven. By comparison, the Roundhill Magnificent Seven ETF (MAGS), and the Vanguard Information Technology ETF (VGT), which hold the stock, have risen around 11% and 29%, respectively, over the same period. See Also: AMD, QCOM Targets Raised While INTC, COHR Face Cuts — Susquehanna Sees 'Modest Upside' For Chip Earnings For updates and corrections, email newsroom[at]stocktwits[dot]com Harshita Tyagi has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: - FUN Stock Heads For 4th Week Of Loss: Analyst Sees 29% Downside Ahead Of Earnings As Mounting Debt, Weak Sales Loom - Nuclear Energy Analyst Roundup: Wall Street Weighs In On OKLO, SMR, CEG, VST, LEU Stocks - TSLA, SPCX Slip Overnight: Musk Reportedly Pushes Merger Before Trump's Exit — ARK Sees Tesla Holders '5x Better Off' By 2036

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) closed at $422.25 on October 15. The stock has returned 16.21% over the last six months, compared to a 15.4% return for the Insider Monkey Billionaire Index and 11.4% for the State Street SPDR S&P 500 ETF Trust. Taiwan Semiconductor does not design chips. It builds them for the companies that do. Nvidia, Apple, Broadcom and most of the names associated with artificial intelligence send their designs here and take finished silicon away. That makes it the one company in the industry almost nobody can route around. It reported third-quarter results on October 15, and they were the strongest in the company's history. READ ALSO: 10 Best Semiconductor Stocks to Buy According to Billionaires Revenue came to $46.72 billion, above the range management had guided to three months earlier. Net profit rose 68.7%, faster than revenue did. Profit rose faster than revenue did. For a company whose costs are mostly the factories themselves, that gap is what appears when the plants run full. The margin is the detail worth holding onto. Gross margin reached 66.4% while the company was starting mass production on its newest process. A new process normally costs margin before it earns any, because yields begin low and the equipment is paid for whether it produces or not. Taiwan Semiconductor appears in our 10 Most Promising Technology Stocks to Buy Right Now, where analysts see more room in several of the companies it manufactures for. To see the other nine, click HERE. DON'T MISS: 14 AI Stocks Making Headlines on Wall Street: Qualcomm, Microsoft, and More The customer list is the risk and the strength at once. A handful of companies account for an enormous share of the advanced capacity, and their spending plans are set a year or more ahead of the orders reaching Taiwan. Then there is the thing no spreadsheet handles. The company's most advanced plants sit on an island whose political status is disputed, and no amount of capacity built in Arizona or Japan changes where the centre of gravity is today. The shares change hands at 21.41 times what analysts expect next year, against 33.67 times what the company actually earned. The gap is the market pricing in another large step up in profit, which is the same thing the quarter just delivered. What that price buys is a position almost nobody can go around, attached to a customer list that can change its mind. The multiple is not demanding for the growth. It is demanding of the assumption that the spending behind it keeps coming. Check out: 10 Best Mortgage Finance Stocks To Buy According to Billionaires The quarter did the most a quarter can do. Revenue beat the guidance, margins held through a difficult process change, and the outlook went up rather than down. None of that answers whether the customers keep spending at this pace, and the investment case runs mostly through their budgets rather than through anything the company controls. Watch what the designers say about next year, because that is what fills these factories. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was held by 249 hedge funds with a combined stake value of about $50.48 billion at the end of Q2 2026 in the Insider Monkey database. This is up from 234 hedge fund holders with a cumulative investment value of around $39.22 billion in the previous quarter. While we acknowledge the potential of TSM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Most Promising Technology Stocks to Buy Right Now and 10 Best Semiconductor Stocks to Buy According to Billionaires This article is originally published at Insider Monkey.

Earnings season picks up this week, with two Magnificent 7 members' results taking center stage. Meta Platforms and Tesla will hand in their quarterly numbers on Wednesday, kicking off a series of reports from Big Tech. Alphabet, Microsoft and Amazon are slated to join the fun next week, followed by Apple on Nov. 2. (Nvidia, the most valuable member of the group, won't report for some time.) The tech sector—and the seven biggest names in it—have played an outsize role in the stock market's recent gains. Meta will address investors weeks after releasing a widely-embraced AI agent and tailoring the tool for businesses. The momentum comes after Meta's investment in AI weighed on its profits last quarter. Investors are also watching Tesla's investments. The electric vehicle company missed earnings estimates last quarter as it spent heavily on autonomous vehicle and robot projects. Tesla's third-quarter EV deliveries came in ahead of estimates, and it last week showed off the Roadster, a sports car capable of dashing through the air. But Tesla is also facing a probe into the safety standards surrounding Cybercab, its driverless ridesharing service. The results due in the week ahead may also offer insight on credit card spending and media streaming. Travel, too, with four airlines slated to report: Airline executives were optimistic this spring that consumers would pay higher airfare, but air travel was down about 5% year-over-year in September, and Delta Air Lines recently issued a softer-than-expected outlook. The major indexes recorded mixed results for the week. The Dow industrials rose 0.7%, while the S&P 500 fell 2%. A tough week for tech shares weighed particularly on the Nasdaq, which retreated 4.5%, ending a four-week streak of wins. A hotter-than-expected inflation reading fueled speculation that the Fed will continue raising rates, while memory stocks fell after a Chinese firm said it had made an advancement in memory chip production. For more, read Friday's market recap here. Here's a list of major events happening this week. TradingView publishes a more detailed calendar, but clicking the link will take you off the Investopedia site. - Tuesday, Oct. 20: General Motors (GM) is slated to release its third-quarter results at 6:30 a.m., followed by a conference call at 8:30 a.m. GM wants to expand its defense business and recently announced a partnership with weapons manufacturer Lockheed Martin (LMT). - Tuesday: Netflix (NFLX) is set to publish its third-quarter results at 4:01 p.m. ET and host a live interview with executives at 4:45 p.m. ET. The streaming giant's second-quarter numbers were largely in line with expectations, but the company forecast that revenue growth would slow. The streamer announced layoffs last week. Spotify (SPOT) also reports this week. - Wednesday, Oct. 21: Lam Research Corp. (LRCX) is set to discuss its "September quarter" results on a conference call at 5 p.m. ET, with the numbers expected earlier in the afternoon. The company, which produces chipmaking equipment, has enjoyed strong demand during the AI buildout. - Wednesday: IBM (IBM) is scheduled to publish its third-quarter results and host a conference call at 5 p.m. ET. The software giant's stock plunged after it handed in disappointing preliminary results last quarter. IBM said clients were spending less on software and more on server and memory products, which have seen prices surge in recent months. - Wednesday: Meta Platforms (META) is slated to issue its third-quarter results after the stock market closes, followed by a conference call at 5:30 p.m. ET. The social media giant made a record amount of revenue in the second quarter, but earnings came up short of expectations, and shares slid. - Wednesday: Tesla (TSLA) is scheduled to report its third-quarter results after the closing bell, followed by a live question-and-answer webcast at 5:30 p.m. ET. - Thursday, Oct. 22: American Airlines (AAL) is scheduled to host a conference call on its third-quarter results at 8:30 a.m. ET, with the figures expected shortly before then. The airline beat estimates last quarter, but shares fell when it released a downbeat forecast. United Airlines (UAL), Alaska Air Group (ALK) and Southwest Airlines (LUV) also report this week. - Thursday: Procter & Gamble (PG) is slated to hold a conference call on its fiscal first-quarter results at 8:30 a.m. ET, with the numbers expected before then. The company behind Tide and Pampers missed revenue estimates last quarter, sending its stock downward. - Thursday: Comcast (CMCSA) is scheduled to release its third-quarter results and host a conference call at 8:30 a.m. ET. Company shares took off this summer when the internet and wireless provider announced plans to spin off its media arm, NBCUniversal. AT&T (T) also reports this week. - Thursday: Western Digital (WDC) is set to release its fiscal first-quarter results after the closing bell and hold a conference call at 4:30 p.m. ET. The memory and data storage company beat expectations last quarter. Toshiba's plans to double its hard-disk-drive capacity recently weighed on the sector. Wells Fargo CEO Charlie Scharf says positive aspects of the economy outweigh risks, Aaron McDade reports. Amazon CEO Jeff Bezos suggested that retirees stick to index funds while acknowledging that bubbles can hurt investors, Crystal Kim writes. Many Americans may get a break on heating costs this winter, Diccon Hyatt reports. Go beyond the day's market moves with Investopedia's Value Add, where you'll find sharp analysis, investing ideas, and practical guidance on what today's biggest financial stories could mean for your money. Explore Value Add and subscribe on Substack. Read the original article on Investopedia

Netflix NFLX is slated to report third-quarter 2026 results on Oct. 20. For the third quarter, the company forecasts revenues of $12.86 billion, implying 12% growth (11% F/X-neutral), driven by membership gains, pricing and advertising. The Zacks Consensus Estimate for third-quarter revenues is pegged at $12.87 billion, indicating growth of 11.84% year over year. On the profitability front, the company projects third-quarter operating margin of 33.2% versus 28.2% in the year-ago quarter. The consensus mark for earnings is pegged at 82 cents per share. The estimate has remained unchanged over the past 30 days. Image Source: Zacks Investment Research In the last reported quarter, the company delivered an earnings surprise of 1.27%. The company's earnings beat the Zacks Consensus Estimate twice in the trailing four quarters while missing the same twice, the average negative surprise being 4.9%. Netflix, Inc. price-eps-surprise | Netflix, Inc. Quote Our proven model does not predict an earnings beat for Netflix this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. NFLX has an Earnings ESP of +0.25% and a Zacks Rank #4 (Sell) at present. You can see the complete list of today's Zacks #1 Rank stocks here. Pricing is likely to have remained a key lever in the quarter. Price changes in the United States, Mexico and Spain contributed only partially in the second quarter, when UCAN revenues rose 10%, so a full-quarter benefit is expected to have aided results. However, revenue growth was projected to decelerate from 13.4% in the second quarter, while renewed free-trial tests outside the United States and the United Kingdom might have weighed on near-term monetization. The content slate included 72 Hours with Kevin Hart, The Whisper Man, The Hawk, the final season of Outer Banks, Monster: The Lizzie Borden Story and The Gentlemen season 2. In August, Netflix added lifestyle programming from Condé Nast, Hearst and People, complementing video podcasts and creator content. Live programming featured the Home Run Derby on July 13, MLB at Field of Dreams on Aug. 13 and a week-one NFL game in September. While live events have driven sign-ups, Netflix expected live to account for just over 5% of 2026 content spend but only about 1% of view hours, likely pressuring cost efficiency. In advertising, Netflix concluded its 2026 U.S. Upfront in August with commitments nearly doubled, secured its first Media Rating Council accreditation for Netflix Ads Suite and made Pause Ads available programmatically across major demand-side platforms. These steps support the target of roughly $3 billion in 2026 ad revenues. On costs, content amortization was expected to have grown more slowly in the second half, aiding margins, though technology and development expenses rose 22% in the second quarter. Capital expenditures climbed to $218.6 million in the second quarter from $155.9 million a year ago. Netflix maintained 2026 free cash flow guidance of about $12.5 billion. Second-quarter buybacks of $4.7 billion, with $27.1 billion of remaining capacity, are likely to have supported the bottom line. Headwinds include currency volatility, intense competition from streaming rivals, including Apple AAPL, Amazon AMZN and Disney DIS, view-hour growth of just 2% in the first half and $1 billion of debt maturing later this year. Full-year revenue guidance of $51-$51.4 billion and a 31.5% operating margin suggest steady but moderating growth. The consensus mark for third-quarter 2026 Asia-Pacific revenues is pegged at $1.53 billion, indicating 12.1% growth from the figure reported in the year-ago quarter. The Zacks Consensus Estimate for Latin America revenues is pegged at $1.61 billion, suggesting a rise of 17.7% from the figure reported in the previous quarter. Moreover, the consensus mark for EMEA revenues is pegged at $4.14 billion, suggesting an increase of 12% from the figure reported in the year-ago quarter. The Zacks Consensus Estimate for the United States and Canada revenues is pegged at $5.57 billion, indicating an 9.9% rise from the figure reported in the year-ago quarter. Shares of Netflix have plunged 22.6% in the year-to-date period compared with the Zacks Consumer Discretionary sector's decline of 19.6%. Shares of Amazon and Apple have returned 10.2% and 25.8%, respectively, while Disney shares have lost 2.7% in the same time frame. Image Source: Zacks Investment Research Now, let's look at the value Netflix offers investors at current levels. Currently, NFLX is trading at 5.41 times forward 12-month sales. Meanwhile, the Zacks Broadcast Radio and Television industry's forward earnings multiple sits at 4.06 times. The company's valuation looks somewhat stretched compared with its range and the industry average. Netflix has a Value Score of D. Image Source: Zacks Investment Research Netflix's growth engine remains intact, with third-quarter 2026 revenues guided at $12.86 billion, up 11.7% year over year, and operating margin projected to expand to 33.2% from 28.2%. Full-quarter pricing benefits, nearly doubled U.S. Upfront commitments and a roughly $3 billion 2026 ad revenue target support monetization, while $4.7 billion of second-quarter buybacks aid per-share earnings. However, decelerating revenue growth, just 2% first-half view-hour growth and rising live-programming and technology costs temper near-term upside. Stiff competition from rivals for viewing time and a premium valuation further limit the margin of safety, making the stock suited only for patient, long-term investors. Netflix enters its third-quarter 2026 report with expanding margins, accelerating advertising momentum and full-year revenue guidance of $51.0-$51.4 billion. However, moderating revenue growth, stiff competition and a premium valuation limit near-term upside. Existing investors may hold the stock to benefit from pricing and ad-led gains, while new investors could wait for a better entry point after the upcoming results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Netflix, Inc. (NFLX) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The recent selloff in technology and semiconductor stocks has created potential buying opportunities, particularly among companies benefiting from the artificial intelligence (AI) infrastructure boom. Taiwan Semiconductor Manufacturing Company TSM) stands out after delivering better-than-expected third-quarter results on Thursday and issuing upbeat Q4 guidance, reinforcing its position as a leading supplier of advanced chips. With strong earnings momentum and a favorable growth outlook, TSM may be an attractive stock to consider following the recent market pullback as shares have fallen 9% this month but are still up 36% year to date. Image Source: Zacks Investment Research Fueled by surging demand for advanced chips used in AI infrastructure, Taiwan Semiconductor's Q3 earnings reached a quarterly record of $4.60 per share, beating the Zacks Consensus Estimate of $4.45 by 3% and climbing 57% from EPS of $2.92 a year ago. This came as Q3 revenue surged 41% year over year to a quarterly peak of $46.72 billion, surpassing expectations of $45.61 billion. Gross margin remained robust at 66.4%, while operating margin reached 58.7%. Notably, advanced semiconductor technologies accounted for 79% of wafer revenue, reflecting strong demand from major customers such as Nvidia NVDA), Apple AAPL), and Advanced Micro Devices AMD). It's also noteworthy that Taiwan Semiconductor has now exceeded earnings expectations for a remarkable 24 consecutive quarters, with an average EPS surprise of 7.78% in its last four quarterly reports. Image Source: Zacks Investment Research Looking ahead, TSMC projected Q4 revenue of $52.3-$54.3 billion, implying 58% YoY growth at the midpoint and comfortably exceeding Wall Street's expectations of roughly $50.22 billion. The company also anticipates gross margins of 65%-67%, signaling continued profitability as it expands production of next-generation chips. At current levels of around $412 a share, TSM trades at 25X forward earnings, representing only a modest premium to the benchmark S&P 500 and the broader Zacks Computer and Technology sector's 23X. Considering Taiwan Semiconductor is the world's largest dedicated semiconductor foundry provider and a critical supplier to leading AI chipmakers, this valuation still appears reasonable given its impressive earnings growth and favorable outlook. Image Source: Zacks Investment Research Despite recent selling pressure across semiconductor stocks, Taiwan Semiconductor's Q3 earnings beat and upbeat Q4 guidance reinforce its position as a leading beneficiary of the AI infrastructure boom. With accelerating demand for advanced chips and encouraging growth prospects, TSM currently sports a Zacks Rank #2 (Buy), supported by favorable earnings estimate revisions that could gain further momentum following its impressive Q3 report. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- Interested in Morgan Stanley? Here are five stocks we like better. - Morgan Stanley delivered strong third-quarter results, reporting $20.3 billion in revenue, $3.03 in EPS and a 22.6% return on tangible common equity—the fifth consecutive quarter above 20%. - Wealth management reached record levels, with $9.1 billion in revenue, $232 billion in net new assets and total wealth and investment-management client assets rising nearly $400 billion to $10.5 trillion. - Institutional Securities revenue rose 18% to $10 billion, led by a 41% increase in equity revenue, while management highlighted continued AI-related opportunities alongside risks from higher rates, geopolitical tensions and elevated asset valuations. - Apple Is Quietly Building an AI Advantage Few Expected Morgan Stanley (NYSE:MS) reported third-quarter 2026 revenue of $20.3 billion, earnings per share of $3.03 and a return on tangible common equity of 22.6%, extending its streak of quarterly ROTCE above 20% to five quarters. Chairman and Chief Executive Officer Ted Pick said the firm's results reflected momentum across its integrated wealth, investment banking and markets businesses despite a more uncertain market environment late in the quarter. Total client assets in wealth and investment management rose by nearly $400 billion during the period to a record $10.5 trillion. → 5 Retail Picks to Watch as the Holiday Shopping Season Nears - The Pre-IPO Playbook: How to Cash in on Anthropic Before the Bell "Against a complicated backdrop, the quarter's overall performance speaks to the momentum of the integrated firm," Pick said. Wealth management produced record revenue of $9.1 billion and pre-tax profit of $2.8 billion, resulting in a 30.4% pre-tax margin. The business generated $232 billion of net new assets and $80 billion of fee-based flows, both records, according to Executive Vice President and Chief Financial Officer Sharon Yeshaya. → Insider Buying Signals Opportunity in H.B. Fuller, FocalTherics, Cardinal - Riot Platforms Re-Wires the Ledger for a $9B AI Power Play For the first nine months of the year, Morgan Stanley generated roughly $500 billion in net new assets and approximately $175 billion in fee-based flows. Yeshaya said about half of the quarter's fee-based flows came from a corporate retirement mandate. IPO-related activity accounted for just over half of overall net new assets. Management said the firm expects such flows to fluctuate as IPO lockups expire, funds distribute holdings and clients use assets for consumption, but emphasized that its Workplace, self-directed and financial-advisor channels provide opportunities to retain and deepen client relationships. → Broadcom's Anthropic Bet Gets Bigger as $60 Billion Financing Raises the Stakes Pick said Morgan Stanley has added more than $2 trillion in net new assets since acquiring E*TRADE and expanding its Workplace offering six years ago. The wealth platform had $8.4 trillion in client assets and served nearly 21 million relationships at the end of the quarter. Bank lending balances increased by $5 billion sequentially, led by securities-based lending and mortgages. Deposits rose nearly $30 billion to $465 billion. Net interest income in wealth management was $2.2 billion, down modestly as deposits grew and mix shifted, though Yeshaya said the firm expects a modest increase in the fourth quarter, subject to interest rates and client behavior. Management also said net interest income should expand in 2027, primarily supported by loan growth. Yeshaya said the bank's deposit growth was an intentional strategic decision that should provide funding benefits over time, with effects expected to emerge during the following year. Institutional Securities generated $10 billion in revenue, up 18% from a year earlier. Equity revenues rose 41% to $5.8 billion, driven by growth across products and Asia. Prime brokerage benefited from higher financing revenue on increased average client balances, while derivatives revenue rose on stronger early-quarter activity and risk management. Cash equities results also increased on higher client volumes across regions. Fixed-income revenue was $2 billion, as lower structured activity in credit and commodities weighed on results. Macro revenue rose modestly, aided by foreign exchange, while securitized-products performance declined from the prior year. Investment banking revenue totaled $2.2 billion, up 2% year over year. Advisory revenue of $887 million drove the increase, reflecting higher completed activity across most sectors. Equity underwriting revenue declined to $525 million compared with a strong prior-year period, while fixed-income underwriting remained strong at $747 million. Yeshaya said banking pipelines remained "robust and diversified" across products, sectors and regions. She said AI-related activity has contributed to advisory and capital-markets momentum, though activity remains broad-based. Pick described the third quarter as unfolding in two phases. July and August saw strong risk appetite tied to hyperscaler investment in AI infrastructure, while activity slowed following Labor Day amid renewed Middle East tensions and higher global interest rates. He said the firm sees both supportive and cautionary forces entering the fourth quarter. On the positive side, Pick cited continued AI-related capital deployment, rising large-cap corporate earnings, full employment and what he described as a more constructive regulatory backdrop. Risks include persistent geopolitical conflicts, higher benchmark rates and energy prices, elevated asset prices and uncertain policy responses. Addressing questions about AI capital expenditures, Pick said hyperscaler spending is running at roughly $1 trillion annually and could remain around that level over time, though the eventual pace remains uncertain. He said Morgan Stanley is "double overweight" on the AI opportunity, both in serving clients across the ecosystem and in deploying AI within its own operations. Management said AI tools are being used to improve processes ranging from reconciliations and control-related work to sales tools in the equities business. Yeshaya said the firm expects technology spending to increasingly support productivity and revenue growth, with some investment reflecting a redistribution of spending toward AI capabilities. Morgan Stanley ended the quarter with a standardized CET1 ratio of 14.9% and approximately 300 basis points of excess CET1 capital, according to Pick. The firm repurchased $1.5 billion of common stock during the quarter. Standardized risk-weighted assets rose sequentially to $596 billion as the company supported markets clients and expanded corporate lending. Institutional Securities provisions were $141 million, primarily reflecting portfolio growth. Net charge-offs totaled $105 million, mainly tied to certain corporate and commercial real estate loans that had largely been provisioned for in prior periods. Yeshaya said the firm's year-to-date efficiency ratio was 66%, with strong revenue generating operating leverage that more than offset elevated execution-related costs. The quarterly tax rate was 23.3%, and management expects the fourth-quarter rate to be slightly higher while maintaining its full-year guidance. Looking ahead, Pick said Morgan Stanley intends to remain focused on advising clients through varying market conditions. He said corporate strategic dialogue remains active and that pent-up demand, capital-allocation needs and a more favorable regulatory setting could support investment banking activity, though higher rates and geopolitical uncertainty may affect the pace and structure of financings. Morgan Stanley is a global financial services firm serving corporations, governments, financial institutions, individuals and other investors. The company provides investment banking and advisory services, including mergers and acquisitions advice, equity and debt underwriting, securities sales and trading, and corporate lending. Through its Wealth Management business, Morgan Stanley offers financial planning, brokerage, investment advisory and banking services to individual investors, businesses and institutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "What Morgan Stanley (MS) Said on Its Q3 Earnings Call" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Apple Inc. (AAPL), headquartered in Cupertino, California, remains a leading force in the global technology sector. The company designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories. With a market cap of $5 trillion, Apple also offers payment, digital content, cloud and advertising services primarily in consumer, small & mid-sized business, education, enterprise and government markets worldwide. Thetech giant is expected to announce its fiscal fourth-quarter earnings for 2026 after the market closes on Monday, Nov. 2. Ahead of the event, analysts expect Apple to report a profit of $1.99 per share on a diluted basis, up 7.6% from $1.85 per share in the year-ago quarter. The company has consistently surpassed Wall Street's EPS estimates in its last four quarterly reports. - Why It's Time to Load Up on Marvell Stock - Dear Accenture Stock Fans, Mark Your Calendars for Oct. 14 - Dear Nvidia Stock Fans, Mark Your Calendars for October 13 - Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. For the full year, analysts expect Apple to report EPS of $8.75, up 17.3% from $7.46 in fiscal 2025. Its EPS is expected to rise 9% year over year to $9.54 in fiscal 2027. AAPL stock has outperformed the S&P 500 Index's ($SPX) 17.3% gains over the past 52 weeks, with shares up 37.8% during this period. Similarly, it slightly outpaced the State Street Technology Select Sector SPDR ETF's (XLK) 37.7% returns over the same time frame. Apple's outperformance is driven by strong core hardware demand, particularly from the tailwinds of the iPhone 17 and the newly launched iPhone 18 Pro upgrade cycles, a blockbuster Q3 2026 financial report featuring $109.4 billion in revenue and an EPS of $2.02, and continued ecosystem expansion. This momentum is heavily reinforced by Apple's landmark multi-year partnership with Alphabet Inc. (GOOGL) to integrate custom Gemini models as the foundational intelligence engine behind its next-generation, context-aware Siri, alongside anticipated catalyst events, such as the upcoming October 13 smart-home push introducing a new home hub, refreshed Apple TV, and a HomePod mini powered by faster processors capable of running Gemini-trained Siri models. Analysts' consensus opinion on AAPL stock is reasonably bullish, with a "Moderate Buy" rating overall. Out of 39 analysts covering the stock, 19 advise a "Strong Buy" rating, three suggest a "Moderate Buy," 14 give a "Hold," one recommends a "Moderate Sell," and two advocate a "Strong Sell." While AAPL currently trades above its mean price target of $329.96, the Street-high price target of $400 suggests an upside potential of 17.2%. On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com