Better Buy: AMD vs. Taiwan Semiconductor Manufacturing
Aftereffects from the U.S.-China trade war and a boom in demand for tech hardware in the wake of the pandemic last year have semiconductor stocks flying high. Chip manufacturers can't keep up at the moment, and a global chip shortage is looking likely for at least the remainder of 2021.
Two top plays on the industry are Advanced Micro Devices (NASDAQ: AMD) and Taiwan Semiconductor Manufacturing (NYSE: TSM), but one looks like a better buy right now.
Why compare these two stocks? Many investors might forget that AMD spun off its fabrication business, GlobalFoundries, over a decade ago. AMD is one of many chip research and design companies. When it comes to actual manufacturing, it taps a company like GlobalFoundries or TSMC to fabricate its chip creations. AMD and TSMC are thus two different ways to invest in the same trend.
Source Fool.com
