By Keithen Drury
Publication Date: 2025-12-01 06:00:00
It’s no secret that I’m a huge Nvidia fan from an investment standpoint. However, there’s one stock that I think is a better pick in the artificial intelligence (AI) realm than Nvidia: Taiwan Semiconductor (TSM +0.54%). Personally, I don’t think that Taiwan Semiconductor will outperform Nvidia over the next few years. However, it offers one important quality: Diversification.
I think this makes Taiwan Semiconductor a better investment than Nvidia, and it gives investors some safety when it comes to investing in artificial intelligence hardware.
Image source: Getty Images.
Nvidia has dominated the AI hardware sector so far
Most of the AI models you interact with daily were built on Nvidia’s graphics processing units (GPUs). Since the AI spending spree kicked off in 2023, Nvidia’s products have dominated the market due to a strong ecosystem with best-in-class control software. This gives Nvidia a first-mover advantage by making it difficult to switch over to other hardware types. However, if products from AMD or Broadcom can compete against Nvidia’s GPUs, the cost to switch may be less than the costs of computing units from cheaper providers.
Today’s Change
(-1.81%) $-3.26
Current Price
$177.00
Key Data Points
Market Cap
$4301B
Day’s Range
$176.50 – $179.29
52wk Range
$86.62 – $212.19
Volume
121M
Avg Vol
193M
Gross Margin
70.05%
Dividend Yield
0.02%
While AMD has lagged in the AI race, it is starting to catch up. It inked a massive deal with OpenAI, and recently gave bold projections…
