If you follow the artificial intelligence market closely, you probably already know a little about the chipmaking company. Semiconductor manufacturing in Taiwan (NYSE:TSM) and chip designer Nvidia (NASDAQ:NVDA).
Both of these companies are AI leaders in their respective fields, and their stock price rise has outpaced the market over the past year. But which company is better artificial intelligence stocks right away? Let’s go ahead and take a look.
There are many ways to invest in AI growth, and one of the most unique is semiconductor manufacturing. While it may not seem as flashy as a company creating an advanced AI chatbot, the results speak for themselves.
Taiwan Semiconductor’s sales rose 36% in the third quarter (ended September 30) to $23.5 billion, and its profits soared 54% to $1.94 per American depositary receipt. This growth has been driven by massive investments by large technology companies in the production of new AI chips. CC Wei, CEO of Taiwan Semiconductor, said about the company’s latest information. call for results that “nearly all AI innovators [is] work with us. »
The company’s unique opportunity arises from its advanced manufacturing techniques, which include the production of 3-nanometer chips, and it will accelerate the production of 2nm semiconductors starting in 2025. Its lead in semiconductor manufacturing -conductors has given it a 90% market share in the manufacturing of the most efficient semiconductors in the world. advanced processors.
Taiwan Semiconductor is benefiting as the world’s largest technology companies increase their spending on AI infrastructure and compete to offer the most advanced artificial intelligence services. Goldman Sachs estimates that spending on AI will reach $1 trillion over the next few years, which is expected to continue to fuel Taiwan Semiconductor’s growth.
Unlike Taiwan Semiconductor, Nvidia focuses on designing, not manufacturing, the semiconductors that power AI data centers. Nvidia’s GPUs have long been a favored choice among tech companies needing high-powered AI data centers, and demand has exploded recently.
Nvidia’s sales soared 94% in the third quarter (ended October 27) to $35.1 billion, and its non-GAAP earnings rose 103% to $0.81 per share. Driving these impressive results is the company’s data center revenue increasing 112% from last year’s quarter to $30.8 billion.
Like Taiwan Semiconductor, Nvidia is riding a massive wave of investment as companies build new AI infrastructure. Nvidia CEO Jensen Huang believes spending in this segment will reach 2 trillion dollars over the next five years, providing his company with an unprecedented opportunity to benefit.
