Better Semiconductor Stock: TSMC vs. ASML
(NYSE: TSM) and ASML (NASDAQ: ASML) are both linchpins of the semiconductor market. Taiwan Semiconductor Manufacturing (TSMC) is the world's largest and most advanced contract chipmaker. ASML is the largest producer of lithography systems, which are used by TSMC and other foundries to optically etch circuit patterns onto silicon wafers. ASML is also the only producer of extreme ultraviolet (EUV) lithography systems which are used to manufacture the world's smallest and densest chips.
By adopting ASML's EUV systems at a faster rate than Intel (NASDAQ: INTC) and Samsung, TSMC pulled ahead in the "process race" to produce smaller chips. Today, most of the world's top fabless chipmakers -- including Nvidia (NASDAQ: NVDA), , Apple, and Qualcomm -- outsource their production to TSMC. Over the past five years, TSMC's stock nearly tripled as ASML's stock more than doubled. Let's see why both stocks soared, and which one is the better overall investment right now.
Image source: Getty Images.
Source Fool.com
Taiwan Semiconductor Manufacturing Co. Ltd. ADR Stock
The stock is an absolute favorite of our community with 25 Buy predictions and no Sell predictions.
With a target price of 276 € there is a slightly positive potential of 8.88% for Taiwan Semiconductor Manufacturing Co. Ltd. ADR compared to the current price of 253.5 €.
