Microchip Technology Inc (MCHP)vsTaiwan Semiconductor Manufacturing (TSM)
MCHP
Microchip Technology Inc
$96.30
+6.01%
TECHNOLOGY · Cap: $51.63B
TSM
Taiwan Semiconductor Manufacturing
$415.17
+6.94%
TECHNOLOGY · Cap: $2.18T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 86974% more annual revenue ($4.10T vs $4.71B). TSM leads profitability with a 46.5% profit margin vs 4.9%. MCHP appears more attractively valued with a PEG of 0.34. TSM earns a higher WallStSmart Score of 84/100 (A-).
MCHP
Hold48
out of 100
Grade: D+
TSM
Exceptional Buy84
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-31.6%
Fair Value
$75.80
Current Price
$96.30
$20.50 premium
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
Growing faster than its price suggests
Revenue surging 35.1% year-over-year
Large-cap with strong market position
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
Trading at 8.1x book value
Distress zone — elevated risk
ROE of 3.1% — below average capital efficiency
4.9% margin — thin
Premium valuation, high expectations priced in
Trading at 63.5x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : MCHP
The strongest argument for MCHP centers on PEG Ratio, Revenue Growth, Market Cap. Revenue growth of 35.1% demonstrates continued momentum. PEG of 0.34 suggests the stock is reasonably priced for its growth.
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 : MCHP
The primary concerns for MCHP are Price/Book, Altman Z-Score, Return on Equity. A P/E of 432.9x leaves little room for execution misses. Thin 4.9% margins leave little buffer for downturns.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
MCHP profiles as a hypergrowth stock while TSM is a growth play — different risk/reward profiles.
MCHP carries more volatility with a beta of 1.73 — expect wider price swings.
TSM is growing revenue faster at 35.1% — sustainability is the question.
TSM generates stronger free cash flow (377.1B), providing more financial flexibility.
Bottom Line
TSM scores higher overall (84/100 vs 48/100), backed by strong 46.5% margins and 35.1% 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.
Microchip Technology Inc
TECHNOLOGY · SEMICONDUCTORS · USA
Microchip Technology Inc. is a publicly-listed American corporation that manufactures microcontroller, mixed-signal, analog and Flash-IP integrated circuits.
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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