Nvidia $NVDA designs its chips, but another company plays a major role in manufacturing them.
That company is TSMC $TSM
Think of the difference between an architect and a builder.
One develops the design. The other turns it into something physical.
Chip manufacturing is much more specialized, but that distinction helps explain the business models.
Nvidia sells computing technology.
TSMC manufactures chips for customers.
That’s why investors watch TSMC’s demand, manufacturing capacity and profitability for clues about the wider industry.$NVDA
$TSM
That company is TSMC $TSM
Think of the difference between an architect and a builder.
One develops the design. The other turns it into something physical.
Chip manufacturing is much more specialized, but that distinction helps explain the business models.
Nvidia sells computing technology.
TSMC manufactures chips for customers.
That’s why investors watch TSMC’s demand, manufacturing capacity and profitability for clues about the wider industry.$NVDA
$TSM
