Hot or Not, Stock Market Edition: 09/19/2025

Happy Friday. Here’s what’s rolling and what’s falling flat in the market:  

• HOT: Taiwan Semiconductor Manufacturing (TSM) is riding an upgrade on booming AI chip demand and stellar Q2 results, while TJX Companies (TJX) posts strong sales and higher EPS guidance 
• NOT: Palantir Technologies’ (PLTR) hype is undercut by weak Value and shaky momentum, and Alibaba Group (BABA) slides on fading Growth and regulatory headwinds.

P.S. For more stocks making moves, check out our Zen Ratings Upgrades & Downgrades screener.

🔥 HOT: Upgrade alert! Taiwan Semiconductor Manufacturing (NASDAQ: TSM) just got upgraded from a C (Hold) to a B (Buy) from our Zen Ratings system. The company just reported standout Q2 results with year-over-year growth in revenue, earnings per share, and margins. Combine that with the chip giant’s reputation as the backbone of cutting-edge AI chips, and you get more than just loyal investors — you get industry fans betting on TSM’s continued dominance in the red-hot semiconductor space. Digging deeper into the Zen Rating Component Grades, TSM has a standout A rating for Financials, indicating a robust foundation for the company, as well as Bs for Momentum and from our proprietary AI algorithm, which has a proven record of unearthing diamonds in the rough (as evidenced by our AI Factor portfolio, which has generated an average annual return of 48%+). With earnings and margins looking healthier than ever and media calling it the 'AI cornerstone,' TSM is ticking many of the right boxes. 

🥶 NOT: Palantir Technologies (NASDAQ: PLTR) Palantir is rarely dull, but frequently hard to love. Shares were trading higher yesterday following reports suggesting it will finalize a £750 million five-year deal with the UK Ministry of Defense to expand the use of its AI software, but a look under the hood reveals more uncertainty than conviction. Despite its bold AI ambitions, not all news is flattering RN: billionaire Stanley Druckenmiller has dumped his Palantir stake in favor of more specialized AI chipmakers. In terms of Zen Ratings, PLTR earns a middling C (Hold) rating. There’s clear Growth (Component Grade of B) and solid Financials (also an above average B), but Value remains disappointing with a D, and Momentum has a C rating. Recent narratives discuss the stock’s tendency to drop more than the broader market even as the AI conversation heats up, underlining a risk/reward profile that doesn’t suit the faint of heart. For investors looking at Palantir, the signals are mixed.  

🔥 HOT: It’s one long, slow burn for TJX Companies (NYSE: TJX), which is up 18% in the past year. This retail power player and serial earnings winner recently reported stronger-than-expected 4% comparable sales growth across global regions and lifted full-year EPS outlook — a move that’s got Wall Street’s attention. The fundamentals back up the hype: TJX just got upgraded by our Zen Ratings system to a rating of B (Buy), buoyed by Component Grades like an A for Safety and above-average marks for plus healthy Financials and AI scores. Even while its Value and Growth are middling Cs, TJX’s overall business model and steady performance prove resilience is its best fashion statement. For investors seeking a defensive growth and stability combo, TJX may be one to watch. 

🥶 NOT:  Despite recent gains, Alibaba Group (NYSE: BABA) recently downshifted in our Zen Ratings system into a C (Hold) rating. Macro uncertainty and continued worries about access to AI hardware and regulatory overhangs compound the wobbly picture. Even recent bullish takes about international expansion can’t thaw this sentiment. Digging into the Component Grades, there’s little to cling to other than a B in Momentum. Its Growth rating recently slipped from a C to D, joining D ratings for Safety and Sentiment. For a supposed "China bounce-back play," Alibaba’s numbers are somewhat lacking.

What to Do Next?

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