TSMC vs. Nvidia: Which AI Supercycle Growth Stock Is the Better Long-Term Buy? | The Motley Fool

The artificial intelligence (AI) infrastructure boom has created some massive winners, and it’s likely to keep minting winners well into the future. AI is perhaps the biggest technological shift the world has seen, and right now it’s a race to see which companies will win. So if you think AI data center spending is set to soon peak, I’d think again.

Two of the companies that have been leading the AI charge are Nvidia (NVDA +0.93%) and Taiwan Semiconductor Manufacturing (TSM 0.83%). Both stocks have outperformed over the past year, but one looks better positioned for the long term.

Nvidia: The king of AI

It’s hard to overstate how dominant Nvidia has been over the past several years. The company has seen parabolic revenue growth and managed to garner about a 90% market share in the graphics processing unit (GPU) space, which are the chips that have been fueling the AI revolution.

Nvidia also didn’t stumble into its role of being the AI infrastructure leader. This was a carefully orchestrated move that was set into motion well before AI became mainstream. It built a free software platform (CUDA) and seeded it into the places where early AI research was being done, and smartly acquired a conflicted data center networking company (Mellanox) that was ahead of its time.

Today’s Change

(0.93%) $1.64

Current Price

$177.39

Key Data Points

Market Cap

$4.3T

Day’s Range

$171.37 – $177.49

52wk Range

$86.62 – $212.19

Volume

143M

Avg Vol

181M

Gross Margin

71.07