Taiwan Semiconductor Manufacturing (TSM)vsTexas Instruments Incorporated (TXN)
TSM
Taiwan Semiconductor Manufacturing
$413.75
+1.23%
TECHNOLOGY · Cap: $2.22T
TXN
Texas Instruments Incorporated
$260.67
-1.05%
TECHNOLOGY · Cap: $245.39B
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 22727% more annual revenue ($4.44T vs $19.45B). TSM leads profitability with a 49.9% profit margin vs 31.1%. TSM appears more attractively valued with a PEG of 0.79. TSM earns a higher WallStSmart Score of 86/100 (A).
TSM
Exceptional Buy86
out of 100
Grade: A
TXN
Strong Buy78
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+50.6%
Fair Value
$889.36
Current Price
$413.75
$475.61 discount
Intrinsic value data unavailable for TXN.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Mega-cap, among the largest globally
Every $100 of equity generates 34 in profit
Keeps 31 of every $100 in revenue as profit
Strong operational efficiency at 42.6%
Earnings expanding 51.8% YoY
Safe zone — low bankruptcy risk
Areas to Watch
Premium valuation, high expectations priced in
Trading at 84.6x book value
Premium valuation, high expectations priced in
Trading at 13.2x book value
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : TXN
The strongest argument for TXN centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 31.1% and operating margin at 42.6%. Revenue growth of 22.8% demonstrates continued momentum.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Bear Case : TXN
The primary concerns for TXN are P/E Ratio, Price/Book.
Key Dynamics to Monitor
TXN carries more volatility with a beta of 1.31 — 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 78/100), 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.
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 →Texas Instruments Incorporated
TECHNOLOGY · SEMICONDUCTORS · USA
Texas Instruments Incorporated (TI) is an American technology company headquartered in Dallas, Texas, that designs and manufactures semiconductors and various integrated circuits, which it sells to electronics designers and manufacturers globally. It is one of the top 10 semiconductor companies worldwide based on sales volume.
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