Arm Holdings plc American Depositary Shares (ARM)vsTaiwan Semiconductor Manufacturing (TSM)
ARM
Arm Holdings plc American Depositary Shares
$132.35
+1.95%
TECHNOLOGY · Cap: $140.56B
TSM
Taiwan Semiconductor Manufacturing
$329.24
-2.82%
TECHNOLOGY · Cap: $1.79T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 81447% more annual revenue ($3.81T vs $4.67B). TSM leads profitability with a 45.1% profit margin vs 17.2%. TSM appears more attractively valued with a PEG of 1.24. TSM earns a higher WallStSmart Score of 82/100 (A-).
ARM
Buy52
out of 100
Grade: C-
TSM
Exceptional Buy82
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-2356.5%
Fair Value
$5.10
Current Price
$132.35
$127.25 premium
Margin of Safety
+20.1%
Fair Value
$482.51
Current Price
$329.24
$153.27 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Large-cap with strong market position
Revenue surging 26.3% year-over-year
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 45 of every $100 in revenue as profit
Strong operational efficiency at 53.9%
Generating 388.2B in free cash flow
Safe zone — low bankruptcy risk
Areas to Watch
Expensive relative to growth rate
Trading at 18.0x book value
Premium valuation, high expectations priced in
Earnings declined 12.3%
Premium valuation, high expectations priced in
Trading at 50.3x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : ARM
The strongest argument for ARM centers on Altman Z-Score, Market Cap, Revenue Growth. Profitability is solid with margins at 17.2% and operating margin at 15.4%. Revenue growth of 26.3% 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 45.1% and operating margin at 53.9%. Revenue growth of 20.5% demonstrates continued momentum.
Bear Case : ARM
The primary concerns for ARM are PEG Ratio, Price/Book, P/E Ratio. A P/E of 176.5x leaves little room for execution misses.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
ARM carries more volatility with a beta of 4.13 — expect wider price swings.
ARM is growing revenue faster at 26.3% — 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 52/100), backed by strong 45.1% margins and 20.5% revenue growth. Both earn "Exceptional Buy" and "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.
Arm Holdings plc American Depositary Shares
TECHNOLOGY · SEMICONDUCTORS · USA
Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products.
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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