Better Buy: NVIDIA Corporation vs. Cypress Semiconductor

You might be tempted to believe that companies that operate in the semiconductor industry would have similar businesses, but in this case, that couldn't be further from the truth. On the one hand, you have an industry leader that dominates its core business while becoming a key player in a new and emerging technology. The other has a legacy business that has become a commodity and is consistently holding the company back from profitability as it enters a new and promising market.

NVIDIA Corporation (NASDAQ: NVDA) is the industry leader in rendering graphics for gamers and has made impressive moves into artificial intelligence. Cypress Semiconductor Corporation (NASDAQ: CY), meanwhile, has a memory business that is in decline, but has made big moves into the growing internet of things (IoT) market.

Investors that have followed these companies may be tempted to jump to a conclusion about which is a better place for new money, but it is always worth taking a step back to look at the big picture and see which company has better growth prospects going forward.

Source: Fool.com