Taiwan Semiconductor and Eagle Materials have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – February 9, 2026 – Zacks Equity Research shares Taiwan Semiconductor Manufacturing Co. TSM as the Bull of the Day and Eagle Materials Inc. EXP as the Bear of the Day. In addition, Zacks Equity Research provides analysis on BigBear.ai Holdings, Inc. BBAI and Palantir Technologies Inc. PLTR.

Here is a synopsis of all four stocks.

Bull of the Day:

Taiwan Semiconductor Manufacturing Co. is arguably the most important technology firm in the world, making it one of the most surefire buy-and-hold stocks on Wall Street.

TSMC is by far the largest semiconductor manufacturer, capturing around a 90% share of all advanced chip manufacturing. Artificial intelligence innovation and technological growth would come to a halt without Taiwan Semi, which is why it’s actively and aggressively expanding outside of Taiwan to address geopolitical concerns.

Check out the Zacks Earnings Calendar to stay ahead of market-moving news.

Market-movers across tech, from Nvidia to Apple, rely on Taiwan Semi to physically build their most cutting-edge chips for AI and everything else.

The chip maker’s earnings outlook has soared since its Q4 release on January 15 to land Taiwan Semi a Zacks Rank #1 (Strong Buy). TSMC is projected to more than double its sales and earnings between 2024 and 2027 as the AI arms race heats up.

TSM stock has crushed the Zacks Tech sector over the past 20 years and the last 12 months. The AI chip maker also stayed above the fray of the recent AI-driven selloff over the last week.

Despite climbing 67% in the past year and trading right near its all-time highs, TSMC’s average Zacks price still offers 23% upside from its current levels.

To top it all off, Taiwan Semi pays a solid dividend, supported by its stellar balance sheet, and it offers solid value compared to the Tech sector, while trading at a 33% discount to its own peaks.

Buy AI Chip Stock TSMC Now and Hold Forever

Taiwan Semi physically builds and manufactures semiconductors. TSMC, therefore, consistently benefits from broad-based technological growth and innovation because chips are the lifeforce behind nearly all technologies, including AI.

The $1.8 trillion market cap powerhouse is poised to be a long-term AI and technology winner, no matter how the technologies evolve and disrupt the economy. TSMC also stands to grow even as the forward-facing AI companies ebb and flow in the coming decades.

It is not a stretch to say that Taiwan Semi has one of the best chances at remaining a titan of tech 20 years from now compared to any of the Mag 7, since it is the most critical, high-tech picks-and-shovels tech stock of all time.

Nvidia NVDA entrusts Taiwan Semi to manufacture its most sophisticated AI chips, as do other tech innovators and Mag 7 companies. TSMC is boosting its industry-leading 3-nanometer production as Nvidia and other AI chip firms ramp up shipments to fuel the multi-trillion-dollar AI arms race that shows little signs of slowing down.

Shipments of its most advanced 3-nanometer chips accounted for 28% of TSMC’s Q4 wafer revenue, up from 23% in Q3. So-called advanced technologies (“7-nanometer and more”) made up 77% of total wafer revenue last period.

Why Taiwan Semi is One of the Best Tech Stocks to Buy

Warren Buffett and finance professors might use Taiwan Semi as a prime example of creating a nearly impenetrable moat around a business, which is key to long-term success for businesses and investing.

Taiwan Semi reportedly holds a 60% share of the entire foundry market and 90% of advanced chip manufacturing. It’s almost peerless, and likely will be for the foreseeable future, given the decades of internal expertise, human and physical capital, and more required to manufacture the most advanced semiconductors.

TSMC is rapidly addressing one of its only real potential setbacks: geopolitical turmoil.

The company is expanding its manufacturing footprint outside Taiwan. TSMC has announced commitments of $165 billion to build additional chip manufacturing plants in Arizona. This is part of TSMC's long-term effort to build a large-scale manufacturing base in the U.S.

The chip maker is also quickly building out its fabrication efforts in Japan, with it set to start producing its most advanced 3-nanometer chips in Japan for the first time, according to a February 5 Wall Street Journal report. Taiwan Semi is reportedly looking at building plants in Germany and the United Arab Emirates as well.

TSMC’s AI-Boosted Growth Outlook Cements its Bull Case

TSMC averaged ~27% revenue growth between FY20-FY24 (not including its -4% YoY decline in 2023). It posted impressive earnings expansion during this stretch as well, outside of the FY23 dip against a tough-to-compete-against boom.

The company kicked off Q4 2025 earnings season with a bang on January 15, confirming the AI boom remains full steam ahead. TSMC expects it will grow its revenue by 30% in 2026 as part of a CAGR of ~25% from 2024 to 2029. It also raised its 2026 capex guidance to between $52 billion and $56 billion, blowing away 2025's $40.9 billion.

Taiwan Semi is projected to grow its revenue by 29% in FY26 based on Zacks estimates, with 25% sales expansion expected next year to climb from $122 billion in 2025 to $198 billion in FY27—easily doubling its 2024 sales ($88 billion).

On the earnings front, Taiwan Semi is projected to grow its EPS by 33% in 2026 and 24% in 2027 to reach $17.55 a share, vs. $10.65 in 2025 and $7.04 in 2024. This outlook extends its stellar run of earnings growth that kicked off over the past five years.

TSMC’s earnings estimates soared since its release to land the stock its Zacks Rank #1 (Strong Buy), with its FY26 estimates 16% higher and its FY27 estimate up 23%.

TSM stock climbed 13% YTD vs. Tech’s 3% drop and Nvidia’s 1% fall. The chip builder has crushed all of the Mag 7 to start 2026 to help it outperform those seven tech giants over the last two years, up 180%. TSMC’s roughly 1,500% climb over the last decade saw it outperform five of the Mag 7 stocks, lagging only Tesla and Nvidia.

The stock has soared 3,600% over the last 20 years, more than quadrupling the tech sector. TSM is trading right near its all-time highs, yet its average Zacks price target still offers 23% upside to its current price.

TSM might be ready to break out into a new trading range based on the chart above. At the same time, the AI chip maker looks a bit overheated on a 20-year timeframe. Some investors might want to start a position in the stock now and then add to it the next time it experiences a larger pullback.

On the valuation front, Taiwan Semi trades at a 33% discount to its 10-year highs at 23X forward 12-month earnings. The chip maker also trades at a 7% discount to the Tech sector despite its near-term and long-term outperformances.

Wall Street is paying more attention to TSMC stock these days as well. We now have 17 brokerage recommendations for the stock, up from 13 three months ago, with 14 “Strong Buys,” two “Buys,” and one “Hold.” The well-run company pays a dividend, and its balance sheet keeps getting better and better, with its Shareholders' Equity up roughly 170% since 2020.

Bear of the Day:

Eagle Materials Inc. builds heavy construction products and light building materials that are critical for both road construction as well as commercial and residential construction.

Eagle Materials’ earnings outlook faded again after it reported its Q3 fiscal 2026 results on January 29, landing EXP a Zacks Rank #5 (Strong Sell). The company’s recent downward revisions are part of a long-term negative earnings revision trend over the past year-plus.

Should Investors Stay Away from EXP Right Now?

Eagle Materials is a leading U.S. manufacturer of heavy construction products and light building materials. The Dallas, Texas-headquartered company primarily makes Portland Cement, which is critical for building roads and highways. It also makes Gypsum Wallboard that's a vital cog in residential, commercial, and industrial construction.

Eagle Materials has posted impressive growth over the last roughly 15 years, and its long-term upside remains strong. It is facing some near-term headwinds that are negatively impacting its earnings. On top of that, its sales growth is slowing a bit after a huge run, weighed down by a ‘challenging’ residential construction market.

EXP’s Q4 FY26 earnings estimate has dropped 11% since its late January earnings release. Its FY26 estimate is down 5% as well, with its 2027 outlook 7% lower. These recent downward revisions land the stock its Zacks Rank #5 (Strong Sell) right now.

The construction products giant’s recent negative revisions prolong its long-term downward trend. This backdrop might mean that investors want to stay away from Eagle Materials in the short term until it provides upbeat bottom-line guidance.

Long-term, however, Eagle Materials remains a stock to watch given its exposure to upside across the U.S. infrastructure boom and more. And the U.S. housing market is likely to bounce back at some point.

Its CEO touched on that in his Q3 earnings comments, noting that "federal, state, and local spending on public infrastructure projects and private non-residential construction remained elevated, supporting strong demand for our Heavy construction products."   

Additional content:

BigBear.ai Holdings, Inc., a competitor to Palantir Technologies Inc. in the artificial intelligence (AI) defense space, has remained highly volatile throughout 2025. Although the stock attempted a rebound in 2026, it remains firmly in negative territory, with shares down more than 40% over the past six months.

Does this prolonged decline signal a red flag for investors, or is there more beneath the surface that makes the pullback a potential buying opportunity? Let’s take a closer look –

BigBear.ai Bolsters Defense AI Platform, Signals Growth Amid Volatility

Late last year, BigBear.ai completed the strategic acquisition of Ask Sage for $250 million in cash, a move that could boost future revenue growth and strengthen its position in the national defense and security market. The addition of Ask Sage enhances BigBear.ai’s platform with a secure generative AI workflow, allowing customers to deploy AI solutions while preserving data privacy, an increasingly important consideration for defense clients.

BigBear.ai’s CEO, Kevin McAleenan, said, “by bringing Ask Sage into the BigBear.ai family, we are responding directly to what our customers have been asking for – AI that is not only powerful, but trusted, scalable, and ready for real-world missions,” citing the company’s news release. As of now, Ask Sage serves over 100,000 users across 16,000 government teams and numerous commercial customers.

Following the Ask Sage acquisition, BigBear.ai’s management has expressed optimism, increasing its full-year 2025 revenue forecast to between $125 million and $140 million, according to ir.bigbear.ai. Revenues could receive a further boost if the U.S. government’s proposed “big, beautiful bill” is enacted this year. BigBear.ai’s cash balance of $456.6 million as of Sept. 30, 2025, provides further support to the ongoing growth initiatives.

Profitability has long been a challenge for BigBear.ai. However, things have begun to improve, with the company posting net income of $2.5 million in the third quarter of 2025 compared with a net loss of $15.1 million in the year-ago quarter. These positive developments should provide some reassurance to stakeholders, even though the stock continues to experience volatility.

Should You Buy the Dip in BigBear.ai Stock?

While the Ask Sage acquisition, strong cash position, and potential increase in government spending could support BigBear.ai in the long run, current conditions don’t justify new investors buying the stock.

This is because the company’s revenue growth has remained weak, with third-quarter 2025 revenues at $33.1 million, down 20% year over year, and second-quarter 2025 revenues at $32.5 million, down 18% year over year.

To top it off, the company’s operating loss of $21.9 million in the third quarter was more than double that of the previous year. Thus, a drop in sales amid an increase in operating losses could hamper BigBear.ai’s growth momentum.

BigBear.ai’s dependence on government contracts leaves it vulnerable to policy changes, and rising competition in the AI defense sector could pressure revenue growth. As a result, new investors should approach the BBAI stock cautiously and not be tempted to buy the dip.

BigBear.ai currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Free: Instant Access to Zacks' Market-Crushing Strategies

Since 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 Contact

Zacks Investment Research

800-767-3771 ext. 9339

https://www.zacks.com

Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

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.Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research