With increasing production, the semiconductor industry will rebound from current shortages. Large-scale private and federal investments should be made to help the sector, as well as unprecedented demand for chips worldwide. This will greatly benefit NVIDIA (NVDA), and QUALCOMM(QCOM), key players. Which stock is better to buy right now? Learn more. NVIDIA Corporation, Santa Clara (NASDAQ:), is an international visual computing company. It operates in two segments: Graphics and Compute & Networking. QUALCOMM Incorporated is a competitor. It’s based out of San Diego, Calif. and develops, commercializes, and licenses, foundational technologies as well as products for wireless devices. The company operates in three distinct segments: Qualcomm CDMA Technologies, Qualcomm Technology Licensing and Qualcomm Strategic Initiatives.

Global production problems are now caused by the shortage of semiconductors. With federal investments, and the initiatives of industry giants the industry should rebound soon. According to an International Data Corporation (IDC)’s report, dedicated semiconductor foundries have been selected for the rest of the year, with capacity utilization at nearly 100%, which should boost production. The 5G semiconductor revenue is forecast to rise 128% annually, with total smartphone semiconductors expected to grow 28.5%. Both NVDA and QCOM are well-known names in the industry and are expected to gain substantially from the industry’s growth.

NVDA’s shares have gained 74.7% in price over the past six months, while QCOM has returned 5.3% over this period. Also, NVDA’s 69.1% gains year-to-date compare with QCOM’s 12.1% decline/. In terms of their past year’s performance, NVDA is the winner with 78.8% gains versus QCOM’s 19.3%.

Continue reading on StockNews