WallStSmart

Advanced Micro Devices Inc (AMD)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 10896% more annual revenue ($3.81T vs $34.64B). TSM leads profitability with a 45.1% profit margin vs 12.5%. AMD appears more attractively valued with a PEG of 0.58. TSM earns a higher WallStSmart Score of 82/100 (A-).

AMD

Strong Buy

65

out of 100

Grade: B-

Growth: 9.3Profit: 6.0Value: 4.7Quality: 9.0
Piotroski: 6/9Altman Z: 3.74

TSM

Exceptional Buy

82

out of 100

Grade: A-

Growth: 8.7Profit: 10.0Value: 9.3Quality: 9.0
Piotroski: 6/9Altman Z: 3.86
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AMDSignificantly Overvalued (-68.0%)

Margin of Safety

-68.0%

Fair Value

$122.15

Current Price

$199.46

$77.31 premium

UndervaluedFair: $122.15Overvalued
TSMUndervalued (+20.1%)

Margin of Safety

+20.1%

Fair Value

$482.51

Current Price

$339.57

$142.94 discount

UndervaluedFair: $482.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AMD6 strengths · Avg: 9.7/10
Market CapQuality
$320.51B10/10

Mega-cap, among the largest globally

Revenue GrowthGrowth
34.1%10/10

Revenue surging 34.1% year-over-year

EPS GrowthGrowth
217.1%10/10

Earnings expanding 217.1% YoY

Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.7410/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.588/10

Growing faster than its price suggests

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$1.79T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.1%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
45.1%10/10

Keeps 45 of every $100 in revenue as profit

Operating MarginProfitability
53.9%10/10

Strong operational efficiency at 53.9%

Free Cash FlowQuality
$388.17B10/10

Generating 388.2B in free cash flow

Altman Z-ScoreHealth
3.8610/10

Safe zone — low bankruptcy risk

Areas to Watch

AMD2 concerns · Avg: 2.5/10
Return on EquityProfitability
7.1%3/10

ROE of 7.1% — below average capital efficiency

P/E RatioValuation
75.3x2/10

Premium valuation, high expectations priced in

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
33.6x4/10

Premium valuation, high expectations priced in

Price/BookValuation
51.9x2/10

Trading at 51.9x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : AMD

The strongest argument for AMD centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 34.1% demonstrates continued momentum. PEG of 0.58 suggests the stock is reasonably priced for its growth.

Bull Case : TSM

The strongest argument for TSM centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 45.1% and operating margin at 53.9%. Revenue growth of 20.5% demonstrates continued momentum.

Bear Case : AMD

The primary concerns for AMD are Return on Equity, P/E Ratio. A P/E of 75.3x leaves little room for execution misses.

Bear Case : TSM

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

Key Dynamics to Monitor

AMD carries more volatility with a beta of 2.02 — expect wider price swings.

AMD is growing revenue faster at 34.1% — sustainability is the question.

TSM generates stronger free cash flow (388.2B), providing more financial flexibility.

Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TSM scores higher overall (82/100 vs 65/100), backed by strong 45.1% margins and 20.5% revenue growth. Both earn "Exceptional Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Advanced Micro Devices Inc

TECHNOLOGY · SEMICONDUCTORS · USA

Advanced Micro Devices, Inc. (AMD) is an American multinational semiconductor company based in Santa Clara, California, that develops computer processors and related technologies for business and consumer markets. AMD's main products include microprocessors, motherboard chipsets, embedded processors and graphics processors for servers, workstations, personal computers and embedded system applications.

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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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