Nvidia (NASDAQ: NVDA) and (NYSE: WOLF) are both chipmakers that carved out high-growth niches with their unique business strategies. Nvidia is the world's largest producer of discrete graphics processing units (GPUs) for high-end video games and data centers. Its data center business has grown like a weed over the past few years as more organizations upgraded their servers to process advanced machine learning and artificial intelligence (AI) tasks.

Wolfspeed, formerly known as Cree, develops wide-bandgap (WBG) semiconductors made from silicon carbide and gallium nitride -- which can operate at higher voltages, temperatures, and frequencies than traditional silicon chips. The resilience and energy efficiency of its WBG chips make them well suited for short-length LEDs, lasers, military radars, and 5G base stations. Wolfspeed also sells silicon carbide materials to electric vehicle (EV) makers for the production of batteries and powertrains.

Image source: Getty Images.

Continue reading

Source Fool.com