SoundHound AI Inc (SOUN)vsTaiwan Semiconductor Manufacturing (TSM)
SOUN
SoundHound AI Inc
$6.10
-0.49%
TECHNOLOGY · Cap: $2.67B
TSM
Taiwan Semiconductor Manufacturing
$406.11
+2.72%
TECHNOLOGY · Cap: $2.09T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 2413395% more annual revenue ($4.44T vs $183.99M). TSM leads profitability with a 49.9% profit margin vs -91.8%. TSM earns a higher WallStSmart Score of 86/100 (A).
SOUN
Avoid27
out of 100
Grade: F
TSM
Exceptional Buy86
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+4.0%
Fair Value
$8.29
Current Price
$6.10
$2.19 discount
Margin of Safety
+55.0%
Fair Value
$897.55
Current Price
$406.11
$491.44 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 51.7% 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
0.0% earnings growth
ROE of -36.7% — below average capital efficiency
Negative free cash flow — burning cash
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 84.6x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : SOUN
The strongest argument for SOUN centers on Revenue Growth, Debt/Equity. Revenue growth of 51.7% 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 : SOUN
The primary concerns for SOUN are EPS Growth, Return on Equity, Free Cash Flow.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
SOUN profiles as a hypergrowth stock while TSM is a growth play — different risk/reward profiles.
SOUN carries more volatility with a beta of 2.81 — expect wider price swings.
SOUN is growing revenue faster at 51.7% — sustainability is the question.
TSM generates stronger free cash flow (287.4B), providing more financial flexibility.
Bottom Line
TSM scores higher overall (86/100 vs 27/100), backed by strong 49.9% margins and 36.0% revenue growth. Both earn "Exceptional Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
SoundHound AI Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
SoundHound AI, Inc. develops an independent voice artificial intelligence (AI) platform that enables businesses in all industries to deliver high-quality conversational experiences to their customers. The company is headquartered in Santa Clara, California.
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 SOFTWARE - APPLICATION Stocks
Want to dig deeper into these stocks?