The Motley Foolยท2025-07-20 09:00Group 1: Alphabet - Alphabet is the parent company of Google, YouTube, Waymo, and Android, with the majority of its revenue coming from advertisements [3] - Google Search accounted for 56% of Alphabet's revenue in Q1, and the Google Services division generated an operating margin of 42% [4] - Concerns arise as Google Search's market share has fallen below 90% for the first time since 2015, leading to bearish sentiment among analysts [6] - Alphabet's stock trades at 19 times forward earnings, significantly cheaper than the S&P 500's 23.7 times forward earnings [8] - Despite concerns, Google Search's revenue increased by 10% year over year in Q1, indicating resilience [9] - Upcoming Q2 results on July 23 are expected to show continued healthy revenue for Google Search, potentially boosting the stock [10] Group 2: Taiwan Semiconductor - Taiwan Semiconductor (TSMC) is the leading chip foundry, producing chips for major companies like Apple and Nvidia [11] - TSMC does not market chips directly to consumers, which alleviates client concerns about technology theft [11] - The company is launching a 2-nanometer chip node later this year and a 1.6 nm offering in 2026, maintaining its technological edge [12] - TSMC projects a 45% compound annual growth rate (CAGR) in AI-related revenue and nearly 20% CAGR in total revenue over the next five years [13] - The stock trades at 24.9 times forward earnings, which is slightly more expensive than the broader market but justified by its growth potential [14][16] - TSMC's projected 20% growth rate significantly outpaces the market's long-term growth rate of around 10%, indicating it may be undervalued [16]