3 Chip Stocks to Buy Ahead of Earnings

The world's top chip manufacturer Taiwan Semiconductor Manufacturing's (NYSE: TSM), better known as TSMC, second-quarter 2022 earnings report indicates chip spending is still very healthy, especially as businesses update their operations for cloud computing and AI. TSMC said its Q2 sales increased 37% year over year (in U.S. dollars), and provided an outlook for another 36% increase for Q3.

That's fantastic news for TSMC's chip design customers (which use TSMC to make the actual chips to fulfill orders). With demand still on the rise for enterprise hardware, semiconductor companies with a focus on cloud and AI are poised to report healthy growth in Q2 and beyond. Three top TSMC customers that look like buys ahead of earnings are Marvell Technology Group (NASDAQ: MRVL), Advanced Micro Devices (NASDAQ: AMD), and Nvidia (NASDAQ: NVDA). Here's why.

TSMC built itself into the largest chip fabrication company by developing world-class manufacturing technology. It is constantly pouring research dollars into more advanced fab processes. Its 3nm tech process -- representing the best combination of chip computing power, energy efficiency, and chip size -- is gearing up for mass production later this year.

Source Fool.com