Should You Buy This Millionaire-Maker Stock Instead of Nvidia?

Core Insights - Nvidia has experienced a remarkable 32,600% increase in stock value over the past decade, significantly outperforming the S&P 500's 207% gain, making it a "millionaire-maker" stock for long-term investors [1] - TSMC is positioned as a strong alternative investment in the semiconductor space, particularly for those seeking exposure to the AI boom, as it plays a critical role in chip manufacturing for major companies [2][3] Nvidia's Performance - Nvidia's stock has surged due to its central role in the AI revolution, with its GPUs being essential for training and deploying AI models [2] - The company currently trades at a high valuation of 65 times earnings and 36 times sales, which may deter some investors [2] TSMC's Market Position - TSMC is the world's largest semiconductor foundry, serving major clients like Apple, Nvidia, and Qualcomm, and has a customer base of 528, producing nearly 12,000 products across various markets [3][4] - TSMC's revenue for Q3 2024 reached $23.5 billion, a 36$10.1 billion, driven by demand for advanced chip nodes [4] Advanced Technology and Future Growth - TSMC's advanced-process nodes (7nm or smaller) accounted for 69% of total revenue, with the 3nm node contributing 20% of revenue, indicating strong adoption of cutting-edge technology [4][5] - The company is developing 2nm technology, expected to enhance its product offerings and growth potential [5] Market Share and Financial Outlook - TSMC holds a dominant 62% market share in the global semiconductor foundry market, significantly ahead of Samsung's 11% [6] - The company forecasts Q4 revenue of $26.5 billion, representing a potential 35$729 billion in 2022 to $1.47 trillion by 2030, with the foundry market expected to rise from$122 billion to $276 billion by 2033 [7] - TSMC's new Foundry 2.0 business model has expanded its addressable market from$115 billion to $250 billion, indicating sustained growth potential [7] Revenue Estimates and Valuation - Analysts predict TSMC will achieve$89.3 billion in revenue for 2024, a 28% increase from the previous year, with upward revisions in revenue estimates expected [8][9] - TSMC is currently trading at 35 times trailing earnings and 25 times forward earnings, making it a more attractive investment compared to Nvidia [9] Historical Performance - TSMC's stock has increased over nine times in the past decade, suggesting potential for similar future performance [10]