Two of the biggest heavyweights in the chip sector are Taiwan Semiconductor Manufacturing (NYSE: TSM) and Nvidia (NASDAQ: NVDA). They have a great working relationship in the real world, as Nvidia designs its logic chips and then sends them to TSMC to be fabricated. So, as one succeeds, so does the other. However, TSMC has plenty of other clients for which it does foundry work.
For those investors who may be curious about which of these behemoths is the better buy right now, let's compare them across a few key categories.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Taiwan Semiconductor has a large client list that includes Nvidia's primary competitors. It also has exposure to other industrial markets, and chips for everything from automobiles to smartphones. Nvidia, on the other hand, is at this point nearly a pure-play investment in artificial intelligence. While Nvidia has other products, the reality is that the vast majority of its revenue now comes from data center-related items. This focus is making Nvidia a boatload of money and has propelled it to the position of the world's largest company by market cap. So clearly, its bet on data center processors is paying off.
However, while that kind of business concentration can be incredible during boom times, it can be a disaster when spending in that focus area slows. There are no signs that will occur in the data center ****** e anytime soon, but when it does, it will hammer Nvidia.
#data #however
For those investors who may be curious about which of these behemoths is the better buy right now, let's compare them across a few key categories.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Taiwan Semiconductor has a large client list that includes Nvidia's primary competitors. It also has exposure to other industrial markets, and chips for everything from automobiles to smartphones. Nvidia, on the other hand, is at this point nearly a pure-play investment in artificial intelligence. While Nvidia has other products, the reality is that the vast majority of its revenue now comes from data center-related items. This focus is making Nvidia a boatload of money and has propelled it to the position of the world's largest company by market cap. So clearly, its bet on data center processors is paying off.
However, while that kind of business concentration can be incredible during boom times, it can be a disaster when spending in that focus area slows. There are no signs that will occur in the data center ****** e anytime soon, but when it does, it will hammer Nvidia.
#data #however
2 months ago
