Three Hot Technology Stocks: Cloudflare, Microchip, and TSM
After trading at around $100 in the last month, Cloudflare (NET) closed at $132.34. The tech firm posted first-quarter revenue growth and issued its outlook for Q2 and the full year.
Cloudflare’s revenue increased by 26.5% year over year to $479.09, earning $0.16 a share. This growth is consistent with that of CrowdStrike (CRWD), ServiceNow (NOW), Snowflake (SNOW), Zscaler (ZS), and Palantir (PLTR). In Q2, CloudFlare forecasts non-GAAP EPS of $0.18 and up to $0.80 for the year.
Microchip (MCHP) bottomed at below $40, breaking out in the last few weeks. The company posted Q4/2025 results last week. For Q1, Microchip expects diluted EPS of $0.18 - $0.26, well-above the $0.15 consensus estimate. The company is cutting costs while the industry improves.
Taiwan Semiconductor (TSM) is a strong supplier of cutting-edge chips. It unveiled a new A14 process for smartphone AI chip development last month. In addition, TSM reported revenue rising by 48.1% Y/Y to NT$349.57 billion. AI product demand led to higher sales. TSM counts on Apple (AAPL), Nvidia (NVDA), and AMD (AMD) as its customers.
Nvidia benefits from TSM’s reliable production. Sales of its graphics chips are barely enough to keep up with the strong demand.
TSM is a solid core holding. While its valuation is fair, its growth and profitability continue to increase.
