NVIDIA Corporation (NVDA) reported a 73% year-over-year increase in data center revenues, totaling $39.1 billion for Q1 of fiscal 2026. However, recent U.S. export restrictions on H20 chips to China are expected to cost NVIDIA $10.5 billion in lost sales over Q1 and Q2. The company’s anticipated revenue for Q2 stands at $45 billion, indicating a modest 2% growth, significantly lower than previous trends.
Taiwan Semiconductor Manufacturing Company (TSMC) indicated a robust financial outlook, with a 39% revenue rise and a 61% profit increase in Q2 2025. Its advanced 3nm and 5nm chips made up nearly 60% of wafer sales, and AI-related revenues are projected to double in 2025. TSMC raised its full-year revenue growth forecast to 30% from mid-20% and expects revenues of $31.8-$33 billion for the upcoming quarter.
Comparatively, TSMC’s price-to-earnings (P/E) multiple stands at 23.93X, whereas NVIDIA’s is at 35.57X. Analysts suggest TSMC is a more attractive investment option given its lower valuation and solid long-term growth prospects amidst rising AI chip demand and less geopolitical risk.
