WallStSmart

Nova Ltd (NVMI)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 473554% more annual revenue ($4.44T vs $937.50M). TSM leads profitability with a 49.9% profit margin vs 28.8%. TSM appears more attractively valued with a PEG of 0.79. TSM earns a higher WallStSmart Score of 86/100 (A).

NVMI

Buy

62

out of 100

Grade: C+

Growth: 6.7Profit: 9.0Value: 5.0Quality: 6.0
Piotroski: 3/9Altman Z: 2.72

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 NVMI.

TSMUndervalued (+50.6%)

Margin of Safety

+50.6%

Fair Value

$889.36

Current Price

$433.24

$456.12 discount

UndervaluedFair: $889.36Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVMI3 strengths · Avg: 8.3/10
Profit MarginProfitability
28.8%9/10

Keeps 29 of every $100 in revenue as profit

Operating MarginProfitability
29.9%8/10

Strong operational efficiency at 29.9%

Revenue GrowthGrowth
15.9%8/10

15.9% revenue growth

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.22T10/10

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

NVMI4 concerns · Avg: 3.3/10
Price/BookValuation
8.1x4/10

Trading at 8.1x book value

EPS GrowthGrowth
2.9%4/10

2.9% earnings growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
46.3x2/10

Premium valuation, high expectations priced in

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
31.8x4/10

Premium valuation, high expectations priced in

Price/BookValuation
88.6x2/10

Trading at 88.6x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : NVMI

The strongest argument for NVMI centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 28.8% and operating margin at 29.9%. Revenue growth of 15.9% 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 : NVMI

The primary concerns for NVMI are Price/Book, EPS Growth, Piotroski F-Score. A P/E of 46.3x leaves little room for execution misses.

Bear Case : TSM

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

Key Dynamics to Monitor

NVMI carries more volatility with a beta of 1.75 — 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 62/100), backed by strong 49.9% margins and 36.0% revenue growth. Both earn "Exceptional Buy" and "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.

Nova Ltd

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

Nova Measuring Instruments Ltd. designs, develops, produces, and sells process control systems used in semiconductor manufacturing in Israel, Taiwan, the United States, China, Korea, and internationally. The company is headquartered in Rehovot, Israel.

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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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