Better Buy: NVIDIA vs. Texas Instruments
NVIDIA (NASDAQ: NVDA) and Texas Instruments (NASDAQ: TXN) are two of the world's most well-known chipmakers. NVIDIA is the largest producer of high-end gaming and data center GPUs, while Texas Instruments manufactures lower-end analog and embedded chips for various industries.
I compared these two stocks last August and said that NVIDIA's underlying tailwinds and stronger growth rates made it a better buy. But since then, NVIDIA's stock price has only risen about 10% as TI's stock price has jumped nearly 30%. Did I make the wrong call, or is NVIDIA still a better long-term play?
NVIDIA is a fabless chipmaker that outsources the production of its chips to third-party foundries like Taiwan Semiconductor Manufacturing (NYSE: TSM) and Samsung. This approach reduces its operating expenses, but it also leaves it more exposed to the semiconductor shortage as the top foundries struggle to manufacture enough chips.
Source Fool.com
