This post was originally published on this site
Despite the global chip shortage, the semiconductor industry witnessed a 29% year-over-year sales growth in July 2021. Moreover, the industry’s production is expected to increase, with governments across the globe investing heavily in the industry to eliminate the supply bottlenecks faced by several industries due to the chip shortage. Investor interest in the industry is evident from the SPDR S&P Semiconductor ETF’s (XSD) 2.6% gains over the past month versus the SPDR S&P 500 Trust ETF’s (SPY) negative returns. The global semiconductor market is expected to grow at 7.7% CAGR to $778 billion by 2026. So, both TSM and NXPI should benefit.
While TSM lost marginally over the past three months, NXPI surged 6.1%. In terms of the year-to-date price performance, NXPI is a clear winner with 36.3% gains versus TSM’s 6.5% returns. But which of these stocks is a better pick now? Let’s find out.
