Intel vs. TSMC: Which is the Better Semiconductor Stock to Buy Right Now?

Yahoo Finance ·

The current AI boom is propelling many technology stocks into the stratosphere, and two leading semiconductor companies garnering significant investor attention are Intel ( INTC +0.65% ) and Taiwan Semiconductor Manufacturing ( TSM 1.61% ) . Intel's stock has soared 535% over the past year, while TSMC, as it is better known, shares have jumped 110%, as of this writing. With both companies benefiting from AI and from the expanding need for semiconductors in devices, which is the better one to buy right now? Let's take a look. Intel's shares have been accelerating for a couple of reasons, including a flurry of semiconductor manufacturing deals with large tech companies and an emerging view that artificial intelligence processing may soon be more dependent on CPUs. Intel can seemingly do no wrong with its dealmaking lately, with the U.S. government taking a 10% stake in the company, Intel signing new deals to build processors for Space Exploration Technologies (SpaceX) and Tesla 's Terrafab data center project, and Alphabet using Intel's CPUs for its AI data centers.

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In the AI boom, Intel and TSMC are drawing investor attention. Over the past year Intel's stock surged 535% and TSMC rose 110%, and both companies are benefiting from increased AI and device demand. Intel, with a 10% stake by the U.S. government and manufacturing/supply agreements with SpaceX·Tesla·Alphabet, is aiming to expand adoption of CPUs for AI data centers, strengthening incentives for onshoring and infrastructure investment. TSMC continues to benefit from rising foundry demand for high-performance chips, but its relative attractiveness may fluctuate due to policy and valuation variables.

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