Semtech Corporation (SMTC)vsTaiwan Semiconductor Manufacturing (TSM)
SMTC
Semtech Corporation
$185.00
+3.82%
TECHNOLOGY · Cap: $15.18B
TSM
Taiwan Semiconductor Manufacturing
$434.67
+1.02%
TECHNOLOGY · Cap: $2.22T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 378067% more annual revenue ($4.44T vs $1.17B). TSM leads profitability with a 49.9% profit margin vs 13.1%. TSM appears more attractively valued with a PEG of 0.79. TSM earns a higher WallStSmart Score of 86/100 (A).
SMTC
Buy60
out of 100
Grade: C+
TSM
Exceptional Buy86
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for SMTC.
Margin of Safety
+51.5%
Fair Value
$886.73
Current Price
$434.67
$452.06 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 32.7% year-over-year
Every $100 of equity generates 21 in profit
Earnings expanding 22.7% YoY
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
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 30.0x book value
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 88.9x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : SMTC
The strongest argument for SMTC centers on Revenue Growth, Return on Equity, EPS Growth. Revenue growth of 32.7% 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 : SMTC
The primary concerns for SMTC are PEG Ratio, P/E Ratio, Price/Book. A P/E of 107.7x leaves little room for execution misses.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
SMTC carries more volatility with a beta of 2.35 — 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.
Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (86/100 vs 60/100), backed by strong 49.9% margins and 36.0% 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.
Semtech Corporation
TECHNOLOGY · SEMICONDUCTORS · USA
Semtech Corporation designs, develops, manufactures, and markets mixed-signal and analog semiconductor products and advanced algorithms. The company is headquartered in Camarillo, California.
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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