NVIDIA Corporation (NVDA) and Taiwan Semiconductor Manufacturing Company (TSMC) have reported significant growth due to increasing demand for AI and high-performance computing. In the fourth quarter of fiscal 2026, NVIDIA’s revenues soared 73% year-over-year to $68.13 billion, and its Data Center segment contributed $62.31 billion, accounting for 91.5% of total sales. Meanwhile, TSMC’s revenues for 2025 reached $122.42 billion, a 36% increase from 2024, with AI-related chip sales now comprising 58% of total revenues.
NVIDIA anticipates a further revenue growth of 60% and EPS growth of 63.9% in fiscal year 2027, while TSMC expects 30.7% revenue and 34.9% EPS growth in the same period. Geopolitical tensions and high capital expenditure are potential challenges for TSMC, which plans to invest up to $56 billion in 2026. Conversely, NVIDIA holds a Zacks Rank of #2 (Buy) due to its strong growth trajectory, positioning it as a more attractive investment compared to TSMC, which currently holds a Zacks Rank of #3 (Hold).
