Better Semiconductor Stock: TSMC vs. Nvidia
The past two years have been absolutely stunning for semiconductor stocks, with the PHLX Semiconductor Sector index rising 81% during this period. Artificial intelligence (AI) played a central role in this remarkable surge.
Nvidia (NASDAQ: NVDA) was one of the biggest beneficiaries of this rally, gaining close to 702% in the past two years as companies and governments have been buying its AI chips hand over fist. The company on which Nvidia relies for manufacturing its AI chips has clocked relatively smaller gains of 142% in the last two years.
Taiwan Semiconductor Manufacturing (NYSE: TSM), popularly known as TSMC, is the world's largest semiconductor foundry. Fabless chipmakers, such as Nvidia, which design their chips but don't manufacture them, utilize TSMC's fabs for manufacturing. However, there's more to TSMC than just Nvidia.
Source Fool.com
