WallStSmart

Arteris Inc (AIP)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 5768047% more annual revenue ($4.44T vs $76.98M). TSM leads profitability with a 49.9% profit margin vs -44.9%. TSM earns a higher WallStSmart Score of 84/100 (A-).

AIP

Avoid

27

out of 100

Grade: F

Growth: 7.3Profit: 2.0Value: 4.0Quality: 3.0
Piotroski: 5/9Altman Z: -2.33

TSM

Exceptional Buy

84

out of 100

Grade: A-

Growth: 9.3Profit: 10.0Value: 7.3Quality: 9.0
Piotroski: 6/9Altman Z: 3.85
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AIPSignificantly Overvalued (-29.5%)

Margin of Safety

-29.5%

Fair Value

$11.66

Current Price

$26.96

$15.30 premium

UndervaluedFair: $11.66Overvalued
TSMUndervalued (+56.3%)

Margin of Safety

+56.3%

Fair Value

$897.55

Current Price

$392.31

$505.24 discount

UndervaluedFair: $897.55Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AIP1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
38.7%10/10

Revenue surging 38.7% year-over-year

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.07T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.9%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
49.9%10/10

Keeps 50 of every $100 in revenue as profit

Operating MarginProfitability
60.3%10/10

Strong operational efficiency at 60.3%

Revenue GrowthGrowth
36.0%10/10

Revenue surging 36.0% year-over-year

EPS GrowthGrowth
77.4%10/10

Earnings expanding 77.4% YoY

Areas to Watch

AIP4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$1.58B3/10

Smaller company, higher risk/reward

Price/BookValuation
449.3x2/10

Trading at 449.3x book value

Return on EquityProfitability
-1370.0%2/10

ROE of -1370.0% — below average capital efficiency

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
29.8x4/10

Moderate valuation

Price/BookValuation
89.2x2/10

Trading at 89.2x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : AIP

The strongest argument for AIP centers on Revenue Growth. Revenue growth of 38.7% demonstrates continued momentum.

Bull Case : TSM

The strongest argument for TSM centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 49.9% and operating margin at 60.3%. Revenue growth of 36.0% demonstrates continued momentum.

Bear Case : AIP

The primary concerns for AIP are EPS Growth, Market Cap, Price/Book. Debt-to-equity of 2.11 is elevated, increasing financial risk.

Bear Case : TSM

The primary concerns for TSM are P/E Ratio, Price/Book.

Key Dynamics to Monitor

AIP profiles as a hypergrowth stock while TSM is a growth play — different risk/reward profiles.

AIP carries more volatility with a beta of 1.92 — expect wider price swings.

AIP is growing revenue faster at 38.7% — sustainability is the question.

TSM generates stronger free cash flow (287.4B), providing more financial flexibility.

Bottom Line

TSM scores higher overall (84/100 vs 27/100), backed by strong 49.9% margins and 36.0% revenue growth. Both earn "Exceptional Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Arteris Inc

TECHNOLOGY · SEMICONDUCTORS · USA

Arteris Inc. (AIP) is a leading innovator in the semiconductor industry, specializing in interconnect IP solutions that enhance communication efficiency in system-on-chip (SoC) architectures. The company addresses the growing complexity and performance demands of modern chip designs, providing a comprehensive product portfolio tailored to meet the needs of a diverse clientele across the electronics market. Through strategic partnerships, Arteris strengthens its competitive position while seizing new growth opportunities, solidifying its role as a crucial enabler of technological advancement in the fast-paced semiconductor landscape.

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Taiwan Semiconductor Manufacturing

TECHNOLOGY · SEMICONDUCTORS · USA

Taiwan Semiconductor Manufacturing Company, Limited is a Taiwanese multinational semiconductor contract manufacturing and design company. It is one of Taiwan's largest companies, the world's most valuable semiconductor company, and the world's largest dedicated independent (pure-play) semiconductor foundry, with its headquarters and main operations located in the Hsinchu Science Park in Hsinchu, Taiwan. It is majority owned by foreign investors.

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