Nvidia: Historic rise invigorates tech market – These two stocks offer long-term opportunities

Over the past two years, Nvidia (NASDAQ: NVDA) has arguably garnered more attention than any other stock on the market. The burgeoning field of Artificial Intelligence (AI) has made Nvidia's graphics processors (GPUs) a highly sought-after and crucial product for AI training. This has positioned Nvidia as a hot pick in the stock market: from September 2022 to early September 2024, its stock price soared by over 750%, which is 18 times the growth of the S&P 500 over the same period—a remarkable achievement for a company that started with a market capitalization of around $300 million. Nvidia's financial results underpin the hype. Revenue and operating income rose by a respectable 122% and 174%, respectively. Despite the accolades for Nvidia, there are two companies that might be worth investing in due to their long-term stability. #### Taiwan Semiconductor – Reliable Chip Manufacturer Taiwan Semiconductor Manufacturing Company (NYSE: TSM) (TSMC) is a key player in the tech world despite being less well-known. As the operator of the world's largest semiconductor foundry, TSMC manufactures custom chips for various companies. The large-scale production of these precision chips requires technological advancements that no other company has yet achieved. One major client of TSMC is Nvidia. TSMC manufactures Nvidia's chips for GPUs, data centers, and other AI-related applications. The quality of Nvidia's products is highly dependent on TSMC's production capabilities, which partly explains Nvidia's high valuation. Although TSMC's growth potential may not be as high as Nvidia's, its development trajectory appears more reliable. Additionally, TSMC offers an attractive dividend that reduces investment risk. The dividend yield is above the S&P 500 average, making it easier for investors to stay calm during turbulent times and believe in the long-term potential. #### Apple – A History of Discipline Apple (NASDAQ: AAPL) exemplifies one of the most valuable publicly traded companies in the world with its discipline and mature corporate strategy. It is therefore surprising that Apple has remained relatively quiet during the recent AI boom, which has puzzled many Wall Street investors. Apple’s approach of introducing revolutionary products like the iPhone or Apple Watch into existing markets is also evident in the AI domain. Rather than joining the AI race, Apple plans to bring its own touch to the market with "Apple Intelligence"—a strategy the company has often successfully implemented. Apple's long-term trustworthiness speaks for itself. While there is some risk, Apple seems well-positioned to continue influencing technological trends in the future and to secure substantial financial benefits for its shareholders. #### Conclusion While Nvidia continues to celebrate impressive successes, Taiwan Semiconductor and Apple might represent attractive long-term investment options due to their more stable business models.