Key Points
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The Nasdaq Composite index has risen 102% over the past three years, driven predominantly by the earnings growth of tech companies, particularly in artificial intelligence (AI).
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As of now, the index stands at approximately 24,400.
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Analysts project tech earnings will increase by 44% in the first quarter of 2026, following a 6% rise in estimates since the onset of the Iran war.
Nvidia holds an 81% share of the AI data center chip market and expects non-GAAP earnings per share to grow by 75% this year, reaching $11.24 in the next fiscal year. Meanwhile, Taiwan Semiconductor Manufacturing Company (TSMC) commands 72% of the third-party foundry market and is projected to raise prices by 5-10% this year due to a shortage of advanced chip manufacturing capacity.
Investors could see Nvidia’s stock price increase by 67% to $337 and TSMC’s by 57% to $575, given their strong market positions and growing demand for AI technology.
