The Motley Foolยท2025-10-26 07:55Microsoft - Microsoft is the largest enterprise software company globally, with a strong position in business intelligence, cybersecurity, and enterprise resource planning [4] - The company has introduced generative AI copilots for its software products, achieving over 100 million monthly active users for its copilot applications [5] - Microsoft Azure is the second-largest public cloud, with cloud revenue growth exceeding 30% for eight consecutive quarters, accelerating to 39% in the most recent quarter [6][7] - Analysts have set a median target price of $631 per share for Microsoft, indicating a 20% upside from its current price of $523 [8] - Expected earnings growth for Microsoft is 12% annually over the next three years, aligning with forecasted sales growth in enterprise software [9] Taiwan Semiconductor Manufacturing Company (TSMC) - TSMC is the largest contract chipmaker in the world, with a market share that increased by 6 percentage points to 71% over the past year [10][12] - The company has historically outspent competitors due to its leading revenue share, allowing it to stay at the forefront of process technology [11] - TSMC has been a major beneficiary of AI infrastructure demand, consistently delivering advanced chips, including the first 3-nanometer process and upcoming 2-nanometer chips [12][13] - Wall Street anticipates TSMC's earnings to grow at 21% annually through 2026, making its current valuation of 30 times earnings appear reasonable [14]