AI is boosting semiconductor industry, with TSMC's revenue surge and Nvidia's record revenue.

From Nasdaq: 2024-11-27 07:00:00

Artificial intelligence is driving growth in the semiconductor industry, benefiting companies like Nvidia and TSMC. TSMC’s revenue surged 36% to $23.5 billion in Q3, with a 90% market share in advanced chips. Nvidia saw record revenue of $35.1 billion in Q3 thanks to AI demand and a dominant 80% market share in GPUs.

TSMC’s success is attributed to its 3nm manufacturing process, leading to a $194.9 billion asset base and strong financials in Q3. Nvidia’s focus on accelerated computing propelled its revenue to new heights, with estimates of $37.5 billion in Q4. Both companies are key players in the AI market.

Choosing between Nvidia and TSMC comes down to factors like P/E ratio and technology. TSMC’s valuation and cutting-edge manufacturing process make it a slightly better investment option for capitalizing on the artificial intelligence trend. Consider the potential for growth in these industry leaders.



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