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While the current global semiconductor shortage has been impacting several industries, the semiconductor industry has been thriving due to the rising prices of chips. Increased demand for chips, primarily from the consumer electronics and automotive industries, and a supply shortage, are driving the rising prices. According to a Technavio report, the global semiconductor market is expected to grow at a 4% CAGR between 2020 – 2024. Both MU and NVDA should benefit as a result.
NVDA has gained 42.8% over the past nine months, while MU returned 43.4%. However, NVDA’s 84.3% gains over the past year are significantly higher than MU’s 43.9% returns. Moreover, in terms of their past six months’ performance, NVDA is the clear winner with 48.7% gains versus MU’s negative returns.
