WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 555250% more annual revenue ($3.81T vs $685.88M). TSM leads profitability with a 45.1% profit margin vs -15.1%. TSM earns a higher WallStSmart Score of 82/100 (A-).

AOSL

Buy

50

out of 100

Grade: C-

Growth: 4.7Profit: 3.0Value: 5.0Quality: 8.5
Piotroski: 3/9Altman Z: 3.92

TSM

Exceptional Buy

82

out of 100

Grade: A-

Growth: 8.7Profit: 10.0Value: 9.3Quality: 9.0
Piotroski: 6/9Altman Z: 3.86
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AOSL.

TSMUndervalued (+20.3%)

Margin of Safety

+20.3%

Fair Value

$483.91

Current Price

$347.75

$136.16 discount

UndervaluedFair: $483.91Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AOSL4 strengths · Avg: 10.0/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
44.9%10/10

Revenue surging 44.9% year-over-year

Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.9210/10

Safe zone — low bankruptcy risk

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$1.71T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.1%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
45.1%10/10

Keeps 45 of every $100 in revenue as profit

Operating MarginProfitability
53.9%10/10

Strong operational efficiency at 53.9%

Free Cash FlowQuality
$388.17B10/10

Generating 388.2B in free cash flow

Altman Z-ScoreHealth
3.8610/10

Safe zone — low bankruptcy risk

Areas to Watch

AOSL4 concerns · Avg: 2.5/10
Market CapQuality
$619.62M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-12.0%2/10

ROE of -12.0% — below average capital efficiency

EPS GrowthGrowth
-98.4%2/10

Earnings declined 98.4%

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

Premium valuation, high expectations priced in

Price/BookValuation
52.9x2/10

Trading at 52.9x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : AOSL

The strongest argument for AOSL centers on Price/Book, Revenue Growth, Debt/Equity. Revenue growth of 44.9% 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 45.1% and operating margin at 53.9%. Revenue growth of 20.5% 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 hypergrowth stock while TSM is a growth play — different risk/reward profiles.

AOSL carries more volatility with a beta of 2.03 — expect wider price swings.

AOSL is growing revenue faster at 44.9% — sustainability is the question.

TSM generates stronger free cash flow (388.2B), providing more financial flexibility.

Bottom Line

TSM scores higher overall (82/100 vs 50/100), backed by strong 45.1% margins and 20.5% 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.

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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