Better Buy: Nvidia vs. Taiwan Semiconductor Stock
Semiconductor companies are cyclical and heavily influenced by macroeconomic factors. Massive research and development costs, upfront expenses to expand manufacturing capacity, and the constant push for innovation make it expensive to stay relevant. But for many companies, the risk is worth the reward because of the rapid growth in chip demand and applications.
Fortune Business Insights estimates that the global semiconductor market will grow at a compound annual rate of 12.2% between 2022 to 2029, more than doubling from $573 billion to nearly 1.4 trillion.
Nvidia (NASDAQ: NVDA) and Taiwan Semiconductor Manufacturing (NYSE: TSM) are two industry-leading companies at the forefront of the chip industry. But both stocks are down over 40% from their all-time highs due to a downturn in the industry. Here's why each company may be worth a look now.
Source Fool.com
