3 Growth Tech Stocks To Buy Now For 2021 And Hold

Chip firms look to foundries such as TSMC for their integrated circuit production because the costs and actual time involved are enormous. This makes building chips in-house less attractive, if not impossible for countless firms. And Taiwan Semiconductor has stepped into this keyspace within the chip industry to land deals with giants like Nvidia.

The company is even helping produce Apple’s (AAPL Quick Quote AAPL - Free Report) new in-house processors, and TSMC could become more valuable as the U.S. and other countries evaluate some of their ties directly to China. TSM also stands to capitalize on the transition to 5G and benefit in the long haul from a world where chips are commonplace and vital. The stock has outpaced the broader tech sector over the last five years, up 330% vs. 130%. This run includes an 85% jump in the past six months and a 30% climb in the last three.

TSMC’s sales have climbed by roughly 30% or higher in the trailing four quarters. Looking ahead, Zacks estimates call for its full-year sales to surge 38% to help lift its adjusted earnings by 62%, with its top and bottom-line growth set to continue next year.

TSM’s positive EPS revisions help it hold a Zacks Rank #2 (Buy) and its 1.4% dividend yield blows away many other growth-focused tech players, Microsoft's (MSFT Quick Quote MSFT - Free Report) 1.1%, and the 10-year U.S. Treasury. Plus, TSM’s Circuit Foundry industry grabs the No. 6 spots out of over 250 Zacks industries and it trades at a discount vs. Microsoft and Apple in terms of forward earnings.  

Nvidia (NVDA Quick Quote NVDA - Free Report)

Nvidia has been one of the biggest success stories in the entire market over the last five years, with the stock up nearly 1,500%. Wall Street loved the GPU power’s ability to grow within the booming video gaming space and benefit from cryptocurrency mining. More importantly, investors loved NVDA’s expansion into data centers and cloud computing.

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