Broadcom Inc (AVGO)vsTaiwan Semiconductor Manufacturing (TSM)
AVGO
Broadcom Inc
$315.93
+1.24%
TECHNOLOGY · Cap: $1.50T
TSM
Taiwan Semiconductor Manufacturing
$339.57
-1.85%
TECHNOLOGY · Cap: $1.79T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 5478% more annual revenue ($3.81T vs $68.28B). TSM leads profitability with a 45.1% profit margin vs 36.6%. AVGO appears more attractively valued with a PEG of 0.74. TSM earns a higher WallStSmart Score of 82/100 (A-).
AVGO
Strong Buy76
out of 100
Grade: B+
TSM
Exceptional Buy82
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-33.8%
Fair Value
$240.08
Current Price
$315.93
$75.85 premium
Margin of Safety
+20.1%
Fair Value
$482.51
Current Price
$339.57
$142.94 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 33 in profit
Keeps 37 of every $100 in revenue as profit
Strong operational efficiency at 31.8%
Growing faster than its price suggests
16.4% revenue growth
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
1.9% earnings growth
Distress zone — elevated risk
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
Trading at 51.9x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : AVGO
The strongest argument for AVGO centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 36.6% and operating margin at 31.8%. Revenue growth of 16.4% 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 : AVGO
The primary concerns for AVGO are EPS Growth, Altman Z-Score, P/E Ratio. A P/E of 61.5x leaves little room for execution misses.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
TSM carries more volatility with a beta of 1.28 — expect wider price swings.
TSM is growing revenue faster at 20.5% — 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 76/100), 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.
Broadcom Inc
TECHNOLOGY · SEMICONDUCTORS · USA
Broadcom Inc. is an American designer, developer, manufacturer and global supplier of a wide range of semiconductor and infrastructure software products. Broadcom's product offerings serve the data center, networking, software, broadband, wireless, and storage and industrial markets.
Visit Website →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.
Visit Website →Compare with Other SEMICONDUCTORS Stocks
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