NVE Corporation (NVEC)vsTaiwan Semiconductor Manufacturing (TSM)
NVEC
NVE Corporation
$114.82
+2.28%
TECHNOLOGY · Cap: $564.06M
TSM
Taiwan Semiconductor Manufacturing
$403.31
+7.64%
TECHNOLOGY · Cap: $2.07T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 14204657% more annual revenue ($4.44T vs $31.26M). NVEC leads profitability with a 57.6% profit margin vs 49.9%. NVEC appears more attractively valued with a PEG of 0.84. TSM earns a higher WallStSmart Score of 84/100 (A-).
NVEC
Strong Buy76
out of 100
Grade: B+
TSM
Exceptional Buy84
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-13.0%
Fair Value
$59.86
Current Price
$114.82
$54.96 premium
Margin of Safety
+56.3%
Fair Value
$897.55
Current Price
$403.31
$494.24 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 30 in profit
Keeps 58 of every $100 in revenue as profit
Strong operational efficiency at 65.8%
Revenue surging 80.7% year-over-year
Earnings expanding 78.6% YoY
Conservative balance sheet, low leverage
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
Trading at 9.5x book value
Smaller company, higher risk/reward
Weak financial health signals
Moderate valuation
Trading at 91.7x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : NVEC
The strongest argument for NVEC centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 57.6% and operating margin at 65.8%. Revenue growth of 80.7% 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 : NVEC
The primary concerns for NVEC are P/E Ratio, Price/Book, Market Cap.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
NVEC carries more volatility with a beta of 1.33 — expect wider price swings.
NVEC is growing revenue faster at 80.7% — 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 (84/100 vs 76/100), backed by strong 49.9% margins and 36.0% revenue growth. Both earn "Exceptional Buy" and "Strong 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.
NVE Corporation
TECHNOLOGY · SEMICONDUCTORS · USA
NVE Corporation develops and sells devices that use spintronics, a nanotechnology that relies on the spin of the electron to acquire, store, and transmit information in the United States and internationally. The company is headquartered in Eden Prairie, Minnesota.
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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