Opinion: TSMC Is a Better Buy Than Any of the "Magnificent Seven" Stocks Right Now
TSMC is a key partner for every member of the "Magnificent Seven."
Overview
It's not easy forecasting stock winners. I wrote a series of articles at the beginning of the year forecasting which "Magnificent Seven" stock would be the best to buy this year. My top pick, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), is up only 7% so far this year, while my bottom pick, Apple (NASDAQ: AAPL), is up nearly 20%.
Nvidia (NASDAQ: NVDA) is once again leading the way, and there's a lot to love about Jensen Huang's company. The most recent earnings report showed revenue of $96.2 billion, up a whopping 106% from a year ago. And the company's next-generation Vera Rubin processors are expected to start generating massive profits soon, as Nvidia calls them the fastest-ramping product in company history.
Details
But Nvidia doesn't have the entire field to itself. It's getting more competition. Alphabet has chips called Tensor Processing Units, its in-house alternative to Nvidia's customized to run on Google Cloud, and is now selling TPU capacity. Amazon's (NASDAQ: AMZN) custom silicon business is also growing, and recently exceeded a $25 billion annual run rate -- its Trainium and Inferentia chips are purpose-built to run on Amazon Web Services' cloud.
Source
Originally published at www.fool.com.