Better Artificial Intelligence (AI) Stock: Nvidia vs. TSMC
Semiconductor giants Nvidia (NASDAQ: NVDA) and Taiwan Semiconductor Manufacturing (NYSE: TSM) have delivered stellar gains so far in 2024 as both companies benefit from the growing demand for artificial intelligence (AI) chips that both companies specialize in.
Nvidia's stock is up 115% this year, while TSMC's gains are just under 55%. The interesting thing to note here is that Nvidia is a fabless semiconductor company, which means that it only designs its chips. It outsources the manufacturing of its chips to foundries such as TSMC.
While Nvidia is considered the top player in the AI chip market, it utilizes TSMC's foundries for its chip manufacturing. Nvidia was TSMC's second-largest customer last year, accounting for 11% of the Taiwan-based foundry giant's revenue. This may lead investors to believe that TSMC's fortunes are dependent on Nvidia's.
Source Fool.com
Taiwan Semiconductor Manufacturing Co. Ltd. ADR Stock
The stock is one of the favorites of our community with 27 Buy predictions and 1 Sell predictions.
With a target price of 180 € there is a slightly positive potential of 7.66% for Taiwan Semiconductor Manufacturing Co. Ltd. ADR compared to the current price of 167.2 €.
