Nvidia Leads in AI Chips, But Rivals TSMC and Micron May Offer Better Value
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Nvidia is seen as the leader in AI chips, but its valuation may be stretched. Other AI stocks could offer better value.
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Taiwan Semiconductor (TSMC) manufactures Nvidia's chips and has a leading position in the chip foundry market.
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TSMC is recovering from the recent chip downturn. Revenue and earnings fell in 2022 but are forecast to rebound strongly.
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Memory chip maker Micron is benefiting from rising AI demand. After volatility in the past, Micron stock has soared recently.
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Micron revenue and earnings declined last quarter but are projected to recover sharply in the next two years as AI chip demand rises.