Microchip Technology Inc (MCHP)vsTaiwan Semiconductor Manufacturing (TSM)
MCHP
Microchip Technology Inc
$81.12
+1.87%
TECHNOLOGY · Cap: $40.10B
TSM
Taiwan Semiconductor Manufacturing
$439.51
-1.79%
TECHNOLOGY · Cap: $2.27T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 96435% more annual revenue ($4.94T vs $5.12B). TSM leads profitability with a 51.1% profit margin vs 9.3%. MCHP appears more attractively valued with a PEG of 0.23. TSM earns a higher WallStSmart Score of 86/100 (A).
MCHP
Buy57
out of 100
Grade: C
TSM
Exceptional Buy86
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+9.3%
Fair Value
$81.61
Current Price
$81.12
$0.49 discount
Margin of Safety
+55.1%
Fair Value
$979.05
Current Price
$439.51
$539.54 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Revenue surging 38.0% year-over-year
Strong operational efficiency at 24.0%
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Keeps 51 of every $100 in revenue as profit
Strong operational efficiency at 58.7%
Revenue surging 50.9% year-over-year
Earnings expanding 68.7% YoY
Areas to Watch
Distress zone — elevated risk
ROE of 7.0% — below average capital efficiency
Premium valuation, high expectations priced in
Earnings declined 81.6%
Moderate valuation
Trading at 83.9x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : MCHP
The strongest argument for MCHP centers on PEG Ratio, Revenue Growth, Operating Margin. Revenue growth of 38.0% demonstrates continued momentum. PEG of 0.23 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 51.1% and operating margin at 58.7%. Revenue growth of 50.9% demonstrates continued momentum.
Bear Case : MCHP
The primary concerns for MCHP are Altman Z-Score, Return on Equity, P/E Ratio. A P/E of 108.6x leaves little room for execution misses.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
MCHP profiles as a hypergrowth stock while TSM is a growth play — different risk/reward profiles.
MCHP carries more volatility with a beta of 1.76 — expect wider price swings.
TSM is growing revenue faster at 50.9% — sustainability is the question.
TSM generates stronger free cash flow (510.1B), providing more financial flexibility.
Bottom Line
TSM scores higher overall (86/100 vs 57/100), backed by strong 51.1% margins and 50.9% 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.
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.
Visit Website →Compare with Other SEMICONDUCTORS Stocks
Want to dig deeper into these stocks?