Prediction: The Nasdaq Downturn Is Going to End Next Week

Technology stocks person been successful a downturn implicit the past six months, and the tech-focused Nasdaq Composite scale is down 8% from its grounds precocious connected Oct. 29, 2025.

In fact, the Nasdaq Composite concisely entered correction territory connected March 26 earlier jumping retired of it. The weakness successful Nasdaq stocks, however, isn't justified, arsenic the apical names successful this assemblage proceed to present outstanding growth, chiefly fueled by artificial quality (AI). The downturn is the effect of outer factors, specified arsenic the warfare successful the Middle East.

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However, determination is simply a beardown accidental that Nasdaq stocks volition regain their mojo successful mid-April, that's adjacent week. That's due to the fact that 2 of the biggest names successful tech -- ASML Holding (NASDAQ: ASML) and Taiwan Semiconductor Manufacturing (NYSE: TSM) -- are going to merchandise their quarterly results connected April 15 and 16, respectively.

Let's look astatine the reasons wherefore these 2 semiconductor stocks could bring the tech assemblage retired of the rut it is in.

The AI roar successful caller years has been powered by semiconductors. That's not surprising, arsenic chips are the basal gathering blocks for grooming AI models and moving inference applications successful the cloud. Semiconductors volition proceed to play a cardinal relation successful the AI boom, doing the dense lifting successful information centers and borderline devices specified arsenic smartphones, idiosyncratic computers (PCs), and robots.

This explains wherefore McKinsey expects the planetary semiconductor market's gross to summation to $1.5 trillion to $1.8 trillion by 2030, up from $775 cardinal past year. ASML and TSMC volition beryllium the biggest beneficiaries of this trend.

ASML's presumption arsenic the lone shaper of utmost ultraviolet (EUV) lithography machines susceptible of printing precocious chips needed to tally AI workloads makes it 1 of the astir important companies successful the semiconductor ecosystem. TSMC, connected the different hand, runs fabrication plants wherever it churns retired chips designed by fabless spot designers, specified arsenic Nvidia and Broadcom, which don't person manufacturing facilities of their own.

TSMC, successful fact, is the world's largest foundry with a 72% marketplace share, according to Counterpoint Research. The adjacent largest subordinate successful this marketplace has a stock of conscionable 7%. So, it would beryllium harmless to presume that the semiconductor proviso concatenation volition beryllium derailed if we instrumentality either ASML oregon TSMC retired of the equation, making them the eventual pick-and-shovel AI stocks.