Investors should consider buying Taiwan Semiconductor Manufacturing instead of Nvidia for growth potential

From Nasdaq: 2024-07-13 07:22:00

Investors have missed out on Nvidia’s incredible rise, but Taiwan Semiconductor Manufacturing (TSMC) presents a solid investment opportunity. TSMC is a top contract chip manufacturer with cutting-edge technology. It has seen significant revenue growth from 3nm chips and is gearing up for the launch of 2nm chips in 2025.

TSMC stands to benefit from Apple’s new feature, Apple Intelligence, which could drive smartphone sales and boost TSMC’s revenue. While TSMC’s stock may appear pricey, its growth potential supports the valuation. Analysts expect TSMC’s earnings per share to rise in the coming years, signaling positive trends for the company.

Compared to Nvidia, TSMC offers a more attractive valuation and similar growth potential. Investors looking for the next big tech stock should consider TSMC, as it has strong long-term prospects. While TSMC wasn’t among the Motley Fool’s top 10 stock picks, its innovative technology and market position make it a compelling investment option for growth-minded investors.



Read more at Nasdaq: Missed Out on Nvidia? Buy Taiwan Semiconductor Manufacturing Instead