Nvidia and Taiwan Semiconductor Manufacturing are key players in the AI value chain. Nvidia designs GPUs for AI workloads, while TSMC fabricates advanced logic and memory chips. Both companies have benefited from the AI trend, but which is a better long-term stock buy?

Nvidia has visibility into $500 billion in combined revenue from Blackwell and Rubin by 2026. Its networking business generates multibillion-dollar revenues, with platforms supporting cloud, enterprise, and AI workloads. However, Nvidia relies heavily on TSMC for chip manufacturing and faces trade restrictions on selling to China.

TSMC earns revenue from producing advanced chips and plans to ramp up production of 2-nanometer and A16 process nodes. It also aims to increase advanced packaging capacity to address chip shipment bottlenecks. However, geopolitical risks in Taiwan must be considered by investors.

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Read more at Nasdaq: Nvidia vs. Taiwan Semiconductor Manufacturing: What’s the Better Buy?