Lam Research Corp (LRCX)vsTaiwan Semiconductor Manufacturing (TSM)
LRCX
Lam Research Corp
$200.44
+8.23%
TECHNOLOGY · Cap: $299.23B
TSM
Taiwan Semiconductor Manufacturing
$353.10
+6.33%
TECHNOLOGY · Cap: $2.27T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 18825% more annual revenue ($4.94T vs $26.13B). TSM leads profitability with a 51.1% profit margin vs 32.3%. TSM appears more attractively valued with a PEG of 0.77. 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
+39.2%
Fair Value
$393.39
Current Price
$200.44
$192.95 discount
Margin of Safety
+55.1%
Fair Value
$979.05
Current Price
$353.10
$625.95 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 61 in profit
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 40.0%
Revenue surging 54.4% year-over-year
Earnings expanding 76.6% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Keeps 51 of every $100 in revenue as profit
Strong operational efficiency at 58.7%
Revenue surging 50.9% year-over-year
Earnings expanding 68.7% YoY
Areas to Watch
Premium valuation, high expectations priced in
Trading at 18.0x book value
Moderate valuation
Trading at 67.4x 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 32.3% and operating margin at 40.0%. Revenue growth of 54.4% 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 51.1% and operating margin at 58.7%. Revenue growth of 50.9% demonstrates continued momentum.
Bear Case : LRCX
The primary concerns for LRCX are P/E Ratio, Price/Book.
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 1.85 — expect wider price swings.
LRCX is growing revenue faster at 54.4% — sustainability is the question.
TSM generates stronger free cash flow (510.1B), 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 51.1% margins and 50.9% revenue growth. LRCX offers better value entry with a 39.2% margin of safety. 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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