Microchip Technology Inc (MCHP)vsTaiwan Semiconductor Manufacturing (TSM)
MCHP
Microchip Technology Inc
$62.97
-0.51%
TECHNOLOGY · Cap: $34.08B
TSM
Taiwan Semiconductor Manufacturing
$329.24
-2.82%
TECHNOLOGY · Cap: $1.79T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 87016% more annual revenue ($3.81T vs $4.37B). TSM leads profitability with a 45.1% profit margin vs -1.6%. MCHP appears more attractively valued with a PEG of 0.78. TSM earns a higher WallStSmart Score of 82/100 (A-).
MCHP
Hold42
out of 100
Grade: D
TSM
Exceptional Buy82
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for MCHP.
Margin of Safety
+20.1%
Fair Value
$482.51
Current Price
$329.24
$153.27 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
15.6% revenue growth
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 45 of every $100 in revenue as profit
Strong operational efficiency at 53.9%
Generating 388.2B in free cash flow
Safe zone — low bankruptcy risk
Areas to Watch
Distress zone — elevated risk
Weak financial health signals
ROE of -109.0% — below average capital efficiency
Earnings declined 81.6%
Premium valuation, high expectations priced in
Trading at 50.3x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : MCHP
The strongest argument for MCHP centers on PEG Ratio, Revenue Growth. Revenue growth of 15.6% demonstrates continued momentum. PEG of 0.78 suggests the stock is reasonably priced for its growth.
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 : MCHP
The primary concerns for MCHP are Altman Z-Score, Piotroski F-Score, Return on Equity.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
MCHP carries more volatility with a beta of 1.45 — expect wider price swings.
TSM is growing revenue faster at 20.5% — sustainability is the question.
TSM generates stronger free cash flow (388.2B), providing more financial flexibility.
Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (82/100 vs 42/100), backed by strong 45.1% margins and 20.5% revenue growth. Both earn "Exceptional Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Microchip Technology Inc
TECHNOLOGY · SEMICONDUCTORS · USA
Microchip Technology Inc. is a publicly-listed American corporation that manufactures microcontroller, mixed-signal, analog and Flash-IP integrated circuits.
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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