Investors should consider buying Nvidia and TSMC as both semiconductor stocks have strong growth potential.

From Nasdaq: 2024-11-26 09:00:00

In 2024, the stock market is thriving, with the S&P 500 up 24% year to date. Tech stocks, especially those involved in artificial intelligence (AI), have seen significant gains. Two standout semiconductor stocks, Nvidia and TSMC, still have upside potential despite their strong performance.

Nvidia has experienced remarkable revenue growth of 135% year over year, with EPS nearly tripling. As demand for AI chips continues to grow, Nvidia’s GPUs remain essential for training advanced AI models. The company’s wide moat, attractive valuation, and ongoing growth opportunities make it a compelling investment option.

TSMC, the world’s largest semiconductor contract manufacturer, has seen a 36% revenue increase in Q3 and a 50% jump in earnings per ADR. With its advanced technology and scale advantages, TSMC has established a strong position in the market. The company’s improving gross margins, pricing power, and attractive valuation make it a favorable choice for investors.

Both Nvidia and TSMC are well-positioned to benefit from the increasing demand for semiconductors, particularly those used in AI applications. Their strong financial performance, market dominance, and growth prospects make them attractive investment opportunities for the future.



Read more at Nasdaq: 2 No-Brainer Semiconductor Stocks to Buy Right Now