WallStSmart

NXP Semiconductors NV (NXPI)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 32432% more annual revenue ($4.10T vs $12.62B). TSM leads profitability with a 46.5% profit margin vs 21.0%. NXPI appears more attractively valued with a PEG of 0.74. TSM earns a higher WallStSmart Score of 84/100 (A-).

NXPI

Strong Buy

78

out of 100

Grade: B+

Growth: 6.0Profit: 9.0Value: 5.3Quality: 5.3
Piotroski: 2/9

TSM

Exceptional Buy

84

out of 100

Grade: A-

Growth: 9.3Profit: 10.0Value: 6.7Quality: 9.0
Piotroski: 6/9Altman Z: 3.86
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NXPISignificantly Overvalued (-32.5%)

Margin of Safety

-32.5%

Fair Value

$188.52

Current Price

$294.75

$106.23 premium

UndervaluedFair: $188.52Overvalued
TSMUndervalued (+72.3%)

Margin of Safety

+72.3%

Fair Value

$1394.10

Current Price

$411.68

$982.42 discount

UndervaluedFair: $1394.10Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NXPI6 strengths · Avg: 9.2/10
Operating MarginProfitability
47.4%10/10

Strong operational efficiency at 47.4%

EPS GrowthGrowth
130.7%10/10

Earnings expanding 130.7% YoY

Market CapQuality
$73.27B9/10

Large-cap with strong market position

Return on EquityProfitability
25.8%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
21.0%9/10

Keeps 21 of every $100 in revenue as profit

PEG RatioValuation
0.748/10

Growing faster than its price suggests

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.18T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.2%10/10

Every $100 of equity generates 36 in profit

Profit MarginProfitability
46.5%10/10

Keeps 47 of every $100 in revenue as profit

Operating MarginProfitability
58.1%10/10

Strong operational efficiency at 58.1%

Revenue GrowthGrowth
35.1%10/10

Revenue surging 35.1% year-over-year

EPS GrowthGrowth
58.4%10/10

Earnings expanding 58.4% YoY

Areas to Watch

NXPI3 concerns · Avg: 3.3/10
P/E RatioValuation
27.8x4/10

Moderate valuation

Debt/EquityHealth
1.223/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
36.0x4/10

Premium valuation, high expectations priced in

Price/BookValuation
62.9x2/10

Trading at 62.9x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : NXPI

The strongest argument for NXPI centers on Operating Margin, EPS Growth, Market Cap. Profitability is solid with margins at 21.0% and operating margin at 47.4%. Revenue growth of 12.2% 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 46.5% and operating margin at 58.1%. Revenue growth of 35.1% demonstrates continued momentum.

Bear Case : NXPI

The primary concerns for NXPI are P/E Ratio, Debt/Equity, Piotroski F-Score.

Bear Case : TSM

The primary concerns for TSM are P/E Ratio, Price/Book.

Key Dynamics to Monitor

NXPI profiles as a mature stock while TSM is a growth play — different risk/reward profiles.

NXPI carries more volatility with a beta of 1.78 — expect wider price swings.

TSM is growing revenue faster at 35.1% — sustainability is the question.

TSM generates stronger free cash flow (377.1B), providing more financial flexibility.

Bottom Line

TSM scores higher overall (84/100 vs 78/100), backed by strong 46.5% margins and 35.1% 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.

NXP Semiconductors NV

TECHNOLOGY · SEMICONDUCTORS · USA

NXP Semiconductors N.V. is a Dutch semiconductor manufacturer with headquarters in Eindhoven, Netherlands.

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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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