Taiwan Semiconductor TSM stock confirmed a candle over candle reversal on July 3, 2023. TSM stock is in a technical strong uptrend.
Taiwan Semiconductor Manufacturing Company Limited (TSMC) is a leading semiconductor manufacturing company. It specializes in the manufacture of integrated circuits (ICs) and provides foundry services to other semiconductor companies. TSMC manufactures a wide range of semiconductor products, including microprocessors, graphic processors, memory chips, and various other types of ICs. The company plays a crucial role in the global semiconductor industry by providing advanced manufacturing processes and technologies to enable the production of high-performance and energy-efficient chips. TSMC’s clients include major technology companies such as Apple, AMD, Nvidia, Qualcomm, and many others.
Taiwan Semiconductor Is a Cheaper Way to Play Nvidia AI Craze
Most significant chip manufacturers, including Nvidia, rely primarily on Taiwan Semiconductor as a supplier. It serves as the supplier to Apple, Qualcomm, and Advanced Micro Devices. Taiwan Semiconductor is Nvidia’s sole supplier. TSM manufactures about 59 percent of all computer chips used globally, and the vast majority of big tech relies on it in some capacity.
Taiwan Semiconductor’s ability to share in Nvidia’s growth as its primary contractor is what makes it so alluring. Taiwan Semiconductor is valued more modestly than Nvidia. TSM trades at a P/E of 16, while NVDA trades at a P/E of 220.