WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 35100% more annual revenue ($4.44T vs $12.62B). TSM leads profitability with a 49.9% profit margin vs 21.0%. NXPI appears more attractively valued with a PEG of 0.69. TSM earns a higher WallStSmart Score of 84/100 (A-).

NXPI

Strong Buy

76

out of 100

Grade: B+

Growth: 6.0Profit: 8.5Value: 5.3Quality: 5.5
Piotroski: 2/9Altman Z: 1.33

TSM

Exceptional Buy

84

out of 100

Grade: A-

Growth: 9.3Profit: 10.0Value: 7.3Quality: 9.0
Piotroski: 6/9Altman Z: 3.85
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NXPISignificantly Overvalued (-54.1%)

Margin of Safety

-54.1%

Fair Value

$156.42

Current Price

$240.98

$84.56 premium

UndervaluedFair: $156.42Overvalued
TSMUndervalued (+56.3%)

Margin of Safety

+56.3%

Fair Value

$897.55

Current Price

$392.31

$505.24 discount

UndervaluedFair: $897.55Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NXPI6 strengths · Avg: 8.8/10
EPS GrowthGrowth
130.7%10/10

Earnings expanding 130.7% YoY

Market CapQuality
$70.39B9/10

Large-cap with strong market position

Return on EquityProfitability
24.3%9/10

Every $100 of equity generates 24 in profit

Profit MarginProfitability
21.0%9/10

Keeps 21 of every $100 in revenue as profit

PEG RatioValuation
0.698/10

Growing faster than its price suggests

Operating MarginProfitability
27.7%8/10

Strong operational efficiency at 27.7%

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.07T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.9%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
49.9%10/10

Keeps 50 of every $100 in revenue as profit

Operating MarginProfitability
60.3%10/10

Strong operational efficiency at 60.3%

Revenue GrowthGrowth
36.0%10/10

Revenue surging 36.0% year-over-year

EPS GrowthGrowth
77.4%10/10

Earnings expanding 77.4% YoY

Areas to Watch

NXPI3 concerns · Avg: 3.0/10
P/E RatioValuation
26.1x4/10

Moderate valuation

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Altman Z-ScoreHealth
1.332/10

Distress zone — elevated risk

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
29.8x4/10

Moderate valuation

Price/BookValuation
89.2x2/10

Trading at 89.2x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : NXPI

The strongest argument for NXPI centers on EPS Growth, Market Cap, Return on Equity. Profitability is solid with margins at 21.0% and operating margin at 27.7%. 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 49.9% and operating margin at 60.3%. Revenue growth of 36.0% demonstrates continued momentum.

Bear Case : NXPI

The primary concerns for NXPI are P/E Ratio, Piotroski F-Score, Altman Z-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 1.80 — 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 (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.

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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