Broadcom vs. Taiwan Semiconductor: Which AI Chip Giant Is the Better Buy Right Now?

When it comes to investing in the AI (artificial intelligence) build-out from the chip side, two names stand out right now as particularly interesting investment ideas: AI chip designer Broadcom (NASDAQ: AVGO) and contract chipmaker Taiwan Semiconductor (NYSE: TSM). Broadcom designs the custom silicon and networking chips that hyperscalers like Alphabet, Meta Platforms, and Anthropic depend on for their growing AI infrastructure. And Taiwan Semiconductor manufactures most of the world’s advanced chips — including the ones Broadcom, Nvidia, and AMD design but cannot build themselves.

Both stocks have been big winners over the past year, and both businesses delivered standout results recently. But there are some real differences when it comes to how directly each company’s growth is tied to AI and how much visibility each one has into the next few years.