Better Buy: Micron Technology vs. Taiwan Semiconductor

Which semiconductor stock has more room to run this year?

The Mot7ley Fool
Date: Jul 6, 2020
By: Leo Sun (TMFSunLion)

Micron Technology (NASDAQ:MU) and Taiwan Semiconductor Manufacturing (NYSE:TSM) are two crucial players in the semiconductor market. Micron is one of the world's top producers of DRAM and NAND memory chips, which are widely used in mobile devices, PCs, data centers, and other electronics.

Taiwan Semiconductor, commonly known as TSMC, is the world's largest contract chipmaker and manufactures the world's most advanced chips for companies like Apple, NVIDIA, Qualcomm, and AMD.

Both stocks have generated big returns for investors over the past five years. Micron's stock has rallied more than 160% on robust demand for its memory chips across multiple industries, while TSMC's stock advanced over 150% on consistently strong orders from its top customers. Let's see which semiconductor stock has more room to run this year.

How does Micron make money?

Micron generates nearly all its revenue from different types of memory chips. DRAM chips accounted for 66% of its revenue last quarter. NAND (flash memory) chips generated another 31% of its revenue, and the rest came from other types of memory.    [FULL  STORY]

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