AI Stock: TSMC or NVIDIA? Chen Chong-ming Analyzes the 'Fundamental Difference': I Buy More Whenever It Drops Significantly

Taiwan's stock market rebounded, with TSMC's share price turning positive in the final trading session on the 23rd, closing at NT$2,405, up NT$5, pushing the broader electronics sector index into positive territory.

Chen Chong-ming, known as the 'undefeated investment guru,' posted on Facebook, referencing a report by U.S. investment media The Motley Fool, which previously stated that TSMC—not the widely discussed NVIDIA—possesses the true 'once-in-a-decade' investment potential.

Chen asked: Which tech stock is the most worthwhile AI investment? The answer, he emphasized, is not NVIDIA, but TSMC. While NVIDIA has slightly underperformed the S&P 500 index this year, TSMC's stock has shown resilience. The Motley Fool previously reported that TSMC, not NVIDIA, holds exceptional long-term investment potential.

What is the foundation of AI development?

Chen explained that despite NVIDIA and Broadcom possessing top-tier chip design capabilities, neither manufactures their own chips—they both rely on TSMC's production capacity. TSMC controls 73% of the global semiconductor manufacturing market, and its market share continues to expand as it maintains technological leadership in advanced processes.

TSMC Chairman Dr. C.C. Wei emphasized during the earnings call that as AI trends intensify, nearly all companies—regardless of CPU architecture (x86, ARM, or RISC-V)—are TSMC customers. Beyond AI, TSMC's chips are widely used in smartphones and autonomous driving. No matter how customer demands or industry trends evolve, any company needing cutting-edge process technology must turn to TSMC.

Chen stressed that AI cannot function without chips—this is the primary reason he remains bullish on TSMC. Whenever the stock experiences a significant drop, he enters the market to buy more shares for long-term investment. For indirect exposure, investors can use ETFs; among them, 0052 has the highest 'TSMC content' and is nicknamed 'Little TSMC,' with cumulative returns far outpacing 0050. From 2020 to now, 0052 has outperformed 0050 by 260%. Chen's own investment order is: TSMC > 0052 > 0050.

Additional exclusive reports from Wind Media: · Amid rising concerns over an AI bubble, TSMC announced a multi-billion-dollar investment in the U.S., earning praise from foreign media as a 'long-term demand reassurance.' · TSMC reportedly plans a 'full price hike' by 2027, affecting both advanced and mature processes, with increases potentially reaching 10%. · TSMC's 'earnings call turning into a funeral service'? The CFO responded to the stock's sharp decline, admitting U.S. factory construction costs are 'five times higher than in Taiwan.'