WallStSmart

Alpha and Omega Semiconductor Ltd (AOSL)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 598975% more annual revenue ($4.10T vs $685.04M). TSM leads profitability with a 46.5% profit margin vs -15.5%. TSM earns a higher WallStSmart Score of 84/100 (A-).

AOSL

Avoid

29

out of 100

Grade: F

Growth: 2.0Profit: 2.0Value: 5.3Quality: 8.5
Piotroski: 3/9Altman Z: 3.92

TSM

Exceptional Buy

84

out of 100

Grade: A-

Growth: 9.3Profit: 10.0Value: 6.7Quality: 9.0
Piotroski: 6/9Altman Z: 3.85
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AOSLUndervalued (+7.6%)

Margin of Safety

+7.6%

Fair Value

$22.69

Current Price

$42.01

$19.32 discount

UndervaluedFair: $22.69Overvalued
TSMUndervalued (+49.5%)

Margin of Safety

+49.5%

Fair Value

$839.44

Current Price

$415.17

$424.27 discount

UndervaluedFair: $839.44Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AOSL3 strengths · Avg: 9.3/10
Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.9210/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.18T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
32.8%10/10

Every $100 of equity generates 33 in profit

Profit MarginProfitability
46.5%10/10

Keeps 47 of every $100 in revenue as profit

Operating MarginProfitability
58.1%10/10

Strong operational efficiency at 58.1%

Revenue GrowthGrowth
35.1%10/10

Revenue surging 35.1% year-over-year

EPS GrowthGrowth
58.4%10/10

Earnings expanding 58.4% YoY

Areas to Watch

AOSL4 concerns · Avg: 2.5/10
Market CapQuality
$1.58B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-13.3%2/10

ROE of -13.3% — below average capital efficiency

Revenue GrowthGrowth
-0.5%2/10

Revenue declined 0.5%

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
36.2x4/10

Premium valuation, high expectations priced in

Price/BookValuation
63.5x2/10

Trading at 63.5x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : AOSL

The strongest argument for AOSL centers on Debt/Equity, Altman Z-Score, Price/Book.

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 : AOSL

The primary concerns for AOSL are Market Cap, Piotroski F-Score, Return on Equity.

Bear Case : TSM

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

Key Dynamics to Monitor

AOSL profiles as a turnaround stock while TSM is a growth play — different risk/reward profiles.

AOSL carries more volatility with a beta of 2.58 — 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 29/100), backed by strong 46.5% margins and 35.1% 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.

Alpha and Omega Semiconductor Ltd

TECHNOLOGY · SEMICONDUCTORS · USA

Alpha and Omega Semiconductor Limited designs, develops and supplies power semiconductor products for computer, consumer electronics, communications and industrial applications. The company is headquartered in Sunnyvale, California.

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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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