WallStSmart

Cerebras Systems Inc. Class A Common Stock (CBRS)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 652268% more annual revenue ($4.44T vs $680.67M). TSM leads profitability with a 49.9% profit margin vs -75.3%. TSM earns a higher WallStSmart Score of 86/100 (A).

CBRS

Hold

38

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 5.0Quality: 7.0
Piotroski: 4/9Altman Z: 0.45

TSM

Exceptional Buy

86

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

Intrinsic value data unavailable for CBRS.

TSMUndervalued (+53.2%)

Margin of Safety

+53.2%

Fair Value

$892.06

Current Price

$417.69

$474.37 discount

UndervaluedFair: $892.06Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CBRS2 strengths · Avg: 9.5/10
Revenue GrowthGrowth
74.3%10/10

Revenue surging 74.3% year-over-year

Debt/EquityHealth
0.169/10

Conservative balance sheet, low leverage

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.16T10/10

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

CBRS4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
-5.6%2/10

ROE of -5.6% — below average capital efficiency

Free Cash FlowQuality
$-476.73M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.452/10

Distress zone — elevated risk

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
30.6x4/10

Premium valuation, high expectations priced in

Price/BookValuation
85.9x2/10

Trading at 85.9x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : CBRS

The strongest argument for CBRS centers on Revenue Growth, Debt/Equity. Revenue growth of 74.3% 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 49.9% and operating margin at 60.3%. Revenue growth of 36.0% demonstrates continued momentum.

Bear Case : CBRS

The primary concerns for CBRS are EPS Growth, Return on Equity, Free Cash Flow.

Bear Case : TSM

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

Key Dynamics to Monitor

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

CBRS is growing revenue faster at 74.3% — sustainability is the question.

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

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

Bottom Line

TSM scores higher overall (86/100 vs 38/100), backed by strong 49.9% margins and 36.0% revenue growth. Both earn "Exceptional Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Cerebras Systems Inc. Class A Common Stock

TECHNOLOGY · SEMICONDUCTORS · USA

Cerebras Systems Inc. designs and develops processors for artificial intelligence (AI) training and inference in the United States, Europe, and Asia. The company is headquartered in Sunnyvale, California.

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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