Broadcom Inc (AVGO)vsTaiwan Semiconductor Manufacturing (TSM)
AVGO
Broadcom Inc
$385.73
+4.30%
TECHNOLOGY · Cap: $1.87T
TSM
Taiwan Semiconductor Manufacturing
$415.17
+6.86%
TECHNOLOGY · Cap: $2.18T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 5338% more annual revenue ($4.10T vs $75.46B). TSM leads profitability with a 46.5% profit margin vs 38.9%. AVGO appears more attractively valued with a PEG of 0.69. TSM earns a higher WallStSmart Score of 84/100 (A-).
AVGO
Exceptional Buy80
out of 100
Grade: A-
TSM
Exceptional Buy84
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AVGO.
Margin of Safety
+49.5%
Fair Value
$839.44
Current Price
$415.17
$424.27 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 39 of every $100 in revenue as profit
Strong operational efficiency at 49.0%
Revenue surging 47.9% year-over-year
Earnings expanding 85.4% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 33 in profit
Keeps 47 of every $100 in revenue as profit
Strong operational efficiency at 58.1%
Revenue surging 35.1% year-over-year
Earnings expanding 58.4% YoY
Areas to Watch
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 20.9x book value
Premium valuation, high expectations priced in
Trading at 63.5x 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 38.9% and operating margin at 49.0%. Revenue growth of 47.9% 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 46.5% and operating margin at 58.1%. Revenue growth of 35.1% demonstrates continued momentum.
Bear Case : AVGO
The primary concerns for AVGO are Altman Z-Score, P/E Ratio, Price/Book. A P/E of 63.7x leaves little room for execution misses.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
AVGO carries more volatility with a beta of 1.43 — expect wider price swings.
AVGO is growing revenue faster at 47.9% — sustainability is the question.
TSM generates stronger free cash flow (377.1B), providing more financial flexibility.
Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (84/100 vs 80/100), backed by strong 46.5% margins and 35.1% revenue growth. Both earn "Exceptional Buy" and "Exceptional 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
Want to dig deeper into these stocks?