Better Buy: Advanced Micro Devices vs. Taiwan Semiconductor
Advanced Micro Devices (NASDAQ: AMD) and Taiwan Semiconductor Manufacturing (NYSE: TSM) depend heavily on one another. Unlike Intel, AMD is a fabless chip company. Thus, it depends on companies such as Taiwan Semiconductor to manufacture its chips.
According to TSM, AMD accounted for 23% of its revenue in 2019, making AMD its largest customer. However, 77% of Taiwan Semiconductor's revenue comes from other customers, and some of these relationships have come to define the company in recent months.
In the end, investors must decide whether the chip designer or the chipmaker is the more suitable investment.
Source Fool.com
