Broadcom Inc (AVGO)vsTaiwan Semiconductor Manufacturing (TSM)
AVGO
Broadcom Inc
$339.27
+0.07%
TECHNOLOGY · Cap: $1.73T
TSM
Taiwan Semiconductor Manufacturing
$413.75
+1.23%
TECHNOLOGY · Cap: $2.22T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 4883% more annual revenue ($4.44T vs $89.10B). TSM leads profitability with a 49.9% profit margin vs 42.9%. AVGO appears more attractively valued with a PEG of 0.36. TSM earns a higher WallStSmart Score of 86/100 (A).
AVGO
Exceptional Buy80
out of 100
Grade: A-
TSM
Exceptional Buy86
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AVGO.
Margin of Safety
+50.6%
Fair Value
$889.36
Current Price
$413.75
$475.61 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Growing faster than its price suggests
Every $100 of equity generates 38 in profit
Keeps 43 of every $100 in revenue as profit
Strong operational efficiency at 54.3%
Revenue surging 85.5% year-over-year
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
Trading at 16.2x book value
Distress zone — elevated risk
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
Trading at 84.6x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : AVGO
The strongest argument for AVGO centers on Market Cap, PEG Ratio, Return on Equity. Profitability is solid with margins at 42.9% and operating margin at 54.3%. Revenue growth of 85.5% 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 : AVGO
The primary concerns for AVGO are Price/Book, Altman Z-Score, P/E Ratio. A P/E of 46.2x leaves little room for execution misses.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
AVGO carries more volatility with a beta of 1.46 — expect wider price swings.
AVGO is growing revenue faster at 85.5% — sustainability is the question.
TSM generates stronger free cash flow (287.4B), providing more financial flexibility.
Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (86/100 vs 80/100), backed by strong 49.9% margins and 36.0% revenue growth. Both earn "Exceptional Buy" and "Exceptional 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.
Broadcom Inc
TECHNOLOGY · SEMICONDUCTORS · USA
Broadcom Inc. is an American designer, developer, manufacturer and global supplier of a wide range of semiconductor and infrastructure software products. Broadcom's product offerings serve the data center, networking, software, broadband, wireless, and storage and industrial markets.
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
Want to dig deeper into these stocks?