Better Artificial Intelligence (AI) Stock: Nvidia vs. TSMC
While Nvidia is considered the top player in the AI chip market, it utilizes TSMC's foundries for its chip manufacturing. Nvidia was TSMC's second-largest customer last year, accounting for 11% of the Taiwan-based foundry giant's revenue. This may lead investors to believe that TSMC's fortunes are dependent on Nvidia's.
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Nvidia stock has struggled in recent weeks after its underwhelming profit guidance fueled worries that the AI investing boom could fizzle out.
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