(C) Reuters. Better Chip Stock: Taiwan Semiconductor or Broadcom
The growing demand for semiconductor chips from several industries amid a global supply shortage is pushing up semiconductor prices, helping most manufactures in this space thrive. With renewed initiatives to increase production, we think Taiwan Semiconductor (TSM) and Broadcom (NASDAQ:AVGO) are well-positioned to keep benefiting from the industry tailwinds. But let’s find out which of these stocks is a better buy now.Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) engages in the manufacture, sale and packaging test of integrated circuits and other semiconductor devices, as well as the provision of computer-aided design services. The company serves customers in computer, communications, consumer, and industrial and standard segments worldwide.
Broadcom Inc. (AVGO) designs, develops and supplies a broad range of analog and digital semiconductor connectivity solutions, including wired infrastructure, wireless communications, enterprise storage and industrial and others. The company’s products are used in data center networking, home connectivity, broadband access, telecommunications equipment, smartphones and base stations.
The growing application of semiconductors in electronic devices, electric vehicles, and several other segments of the broader technology space, coupled with a global supply shortage, is helping semiconductor companies thrive. Investors’ interest in the semiconductor space is evident in the VanEck Vectors Semiconductor ETF’s (SMH) 40.5% returns compared to the SPDR S&P 500 Trust ETF’s (SPY) 21.5% gains over the past nine months.
Better Chip Stock: Taiwan Semiconductor or Broadcom
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