NVIDIA Corporation (NVDA)vsTaiwan Semiconductor Manufacturing (TSM)
NVDA
NVIDIA Corporation
$211.94
+2.56%
TECHNOLOGY · Cap: $5.01T
TSM
Taiwan Semiconductor Manufacturing
$406.11
+2.72%
TECHNOLOGY · Cap: $2.09T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 1652% more annual revenue ($4.44T vs $253.49B). TSM leads profitability with a 49.9% profit margin vs 0.6%. NVDA appears more attractively valued with a PEG of 0.58. TSM earns a higher WallStSmart Score of 86/100 (A).
NVDA
Exceptional Buy80
out of 100
Grade: A-
TSM
Exceptional Buy86
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-65.1%
Fair Value
$119.30
Current Price
$211.94
$92.64 premium
Margin of Safety
+55.0%
Fair Value
$897.55
Current Price
$406.11
$491.44 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 82 in profit
Conservative balance sheet, low leverage
Generating 48.6B in free cash flow
Safe zone — low bankruptcy risk
Growing faster than its price suggests
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
Premium valuation, high expectations priced in
0.9% revenue growth
2.1% earnings growth
0.6% margin — thin
Premium valuation, high expectations priced in
Trading at 84.6x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : NVDA
The strongest argument for NVDA centers on Market Cap, Return on Equity, Debt/Equity. PEG of 0.58 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 49.9% and operating margin at 60.3%. Revenue growth of 36.0% demonstrates continued momentum.
Bear Case : NVDA
The primary concerns for NVDA are P/E Ratio, Revenue Growth, EPS Growth. Thin 0.6% margins leave little buffer for downturns.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
NVDA profiles as a value stock while TSM is a growth play — different risk/reward profiles.
NVDA carries more volatility with a beta of 2.21 — expect wider price swings.
TSM is growing revenue faster at 36.0% — sustainability is the question.
TSM generates stronger free cash flow (287.4B), providing more financial flexibility.
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.
NVIDIA Corporation
TECHNOLOGY · SEMICONDUCTORS · USA
Nvidia Corporation is an American multinational technology company incorporated in Delaware and based in Santa Clara, California. It designs graphics processing units (GPUs) for the gaming and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive market.
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
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