Legendary investor Peter Lynch once said, "When there's a war going on, don't buy the companies that are doing the fighting; buy the companies that sell the bullets." That advice can be applied to chipmakers. While numerous companies are fighting for control of end markets like cloud computing, consumer electronics, and electric cars, all of them depend heavily on semiconductors.

Building on that, Nvidia (NASDAQ: NVDA) and Taiwan Semiconductor Manufacturing (NYSE: TSM) have seen their share prices plunge 51% and 46%, respectively, but both stocks are well positioned to rebound when economic conditions improve and the next bull market thunders to life.

Here's what investors should know.

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Source Fool.com