Lam Research Corp (LRCX)vsTaiwan Semiconductor Manufacturing (TSM)
LRCX
Lam Research Corp
$311.35
+1.82%
TECHNOLOGY · Cap: $397.58B
TSM
Taiwan Semiconductor Manufacturing
$420.04
+0.44%
TECHNOLOGY · Cap: $2.09T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 19013% more annual revenue ($4.44T vs $23.23B). TSM leads profitability with a 49.9% profit margin vs 31.3%. TSM appears more attractively valued with a PEG of 0.91. TSM earns a higher WallStSmart Score of 86/100 (A).
LRCX
Strong Buy78
out of 100
Grade: B+
TSM
Exceptional Buy86
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+12.9%
Fair Value
$352.89
Current Price
$311.35
$41.54 discount
Margin of Safety
+55.0%
Fair Value
$897.55
Current Price
$420.04
$477.51 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 58 in profit
Keeps 31 of every $100 in revenue as profit
Strong operational efficiency at 37.4%
Revenue surging 30.0% year-over-year
Conservative balance sheet, low leverage
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 50 of every $100 in revenue as profit
Strong operational efficiency at 60.3%
Revenue surging 36.0% year-over-year
Earnings expanding 77.4% YoY
Areas to Watch
Premium valuation, high expectations priced in
Trading at 36.8x book value
Premium valuation, high expectations priced in
Trading at 87.5x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : LRCX
The strongest argument for LRCX centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 31.3% and operating margin at 37.4%. Revenue growth of 30.0% 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 : LRCX
The primary concerns for LRCX are P/E Ratio, Price/Book. A P/E of 54.8x leaves little room for execution misses.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
LRCX carries more volatility with a beta of 1.86 — expect wider price swings.
TSM is growing revenue faster at 36.0% — sustainability is the question.
TSM generates stronger free cash flow (287.4B), providing more financial flexibility.
Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (86/100 vs 78/100), backed by strong 49.9% margins and 36.0% 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.
Lam Research Corp
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Lam Research Corporation is an American corporation that engages in the design, manufacture, marketing, and service of semiconductor processing equipment used in the fabrication of integrated circuits. Its products are used primarily in front-end wafer processing, which involves the steps that create the active components of semiconductor devices (transistors, capacitors) and their wiring (interconnects). The company also builds equipment for back-end wafer-level packaging (WLP), and for related manufacturing markets such as for microelectromechanical systems (MEMS). The company is headquartered in Fremont, California, in the Silicon Valley.
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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