AI Investing Insights: TSMC vs. AMD
In 2025, Advanced Micro Devices (AMD) (NASDAQ: AMD) and Taiwan Semiconductor Manufacturing (TSMC) (NYSE: TSM) saw stock rises of 77% and 54%, respectively. As AI spending is set to grow through at least 2030, both companies face pivotal futures. AMD is targeting a compound annual growth rate (CAGR) of 60% in its data center division, while TSMC anticipates a similar 60% CAGR in AI chip sector growth from 2024 to 2029, with company-wide growth projected at 25%.
AMD’s management reported a tenfold increase in downloads of its ROCm GPU software, indicating growing interest in its offerings. Conversely, TSMC remains a dominant supplier, working with major companies like Nvidia and Broadcom. Notably, TSMC’s stock trades at 24 times forward earnings compared to AMD’s 38 times, suggesting it may offer a better value investment. Analysts currently view TSMC as the more stable choice amid rising AI investments.
