NVIDIA Corporation (NVDA)vsTaiwan Semiconductor Manufacturing (TSM)
NVDA
NVIDIA Corporation
$180.40
-1.02%
TECHNOLOGY · Cap: $4.38T
TSM
Taiwan Semiconductor Manufacturing
$339.57
-1.85%
TECHNOLOGY · Cap: $1.79T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 1664% more annual revenue ($3.81T vs $215.94B). NVDA leads profitability with a 55.6% profit margin vs 45.1%. NVDA appears more attractively valued with a PEG of 1.10. TSM earns a higher WallStSmart Score of 82/100 (A-).
NVDA
Strong Buy77
out of 100
Grade: B+
TSM
Exceptional Buy82
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+20.5%
Fair Value
$228.85
Current Price
$180.40
$48.45 discount
Margin of Safety
+20.1%
Fair Value
$482.51
Current Price
$339.57
$142.94 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Keeps 56 of every $100 in revenue as profit
Strong operational efficiency at 65.0%
Revenue surging 73.2% year-over-year
Earnings expanding 95.6% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 45 of every $100 in revenue as profit
Strong operational efficiency at 53.9%
Generating 388.2B in free cash flow
Safe zone — low bankruptcy risk
Areas to Watch
Premium valuation, high expectations priced in
Weak financial health signals
Trading at 27.9x book value
Premium valuation, high expectations priced in
Trading at 51.9x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : NVDA
The strongest argument for NVDA centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 55.6% and operating margin at 65.0%. Revenue growth of 73.2% 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 45.1% and operating margin at 53.9%. Revenue growth of 20.5% demonstrates continued momentum.
Bear Case : NVDA
The primary concerns for NVDA are P/E Ratio, Piotroski F-Score, Price/Book.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
NVDA carries more volatility with a beta of 2.38 — expect wider price swings.
NVDA is growing revenue faster at 73.2% — sustainability is the question.
TSM generates stronger free cash flow (388.2B), providing more financial flexibility.
Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (82/100 vs 77/100), backed by strong 45.1% margins and 20.5% revenue growth. NVDA offers better value entry with a 20.5% 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.
NVIDIA Corporation
TECHNOLOGY · SEMICONDUCTORS · USA
Nvidia Corporation is an American multinational technology company incorporated in Delaware and based in Santa Clara, California. It designs graphics processing units (GPUs) for the gaming and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive market.
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
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