Better Buy: Western Digital vs. TSMC

Western Digital (NASDAQ: WDC) and Taiwan Semiconductor Manufacturing (NYSE: TSM) represent two essential links in the global supply chain for electronic devices. WD is one of the world's leading manufacturers of disk drives and flash memory, and TSMC is its most advanced contract chipmaker. Both tech stocks have more than doubled in value over the past 12 months.

Over the past two years, WD struggled with a cyclical decline in memory prices and soft demand for its older platter-based hard disk drives (HDDs), but its business is gradually stabilizing and attracting value-seeking investors.

TSMC's revenue growth accelerated last year as it accepted more orders from fabless chipmakers like AMD, Apple, and Qualcomm. But TSMC's stock is also getting pricier, and it expects to ramp up its spending to maintain its lead in the "process race" to create smaller and more power-efficient chips.

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Source Fool.com