The article compares Nvidia (NVDA) and TSMC (TSM), two stocks that have benefited strongly from the AI boom, with gains of 874% and 266% respectively over the past five years. Nvidia reported fiscal second-quarter revenue of $96.2 billion, up 106% year over year, and the author notes that its CUDA ecosystem makes it costly for customers to switch to rival chipmakers. TSMC, the chip foundry, saw its gross margin rise from 59.5% to 66.4% between last year's third quarter and this year's, reflecting its pricing power. The author gives TSMC the edge because Nvidia depends heavily on TSMC's manufacturing capacity, and TSMC's $2.2 trillion market cap remains well below Nvidia's $5.2 trillion, which the author sees as leaving more room for upside over the next five years.
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TSMCNvidiasemiconductorsvaluationartificial intelligence
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Related tickers and likely impact
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/23/2026 | 211.00 |
| Change that session | -0.57% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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