Taiwan Semiconductor Manufacturing (TSM)vsWestern Digital Corporation (WDC)
TSM
Taiwan Semiconductor Manufacturing
$417.17
-0.76%
TECHNOLOGY · Cap: $2.09T
WDC
Western Digital Corporation
$519.17
-5.36%
TECHNOLOGY · Cap: $168.00B
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 37605% more annual revenue ($4.44T vs $11.78B). WDC leads profitability with a 55.3% profit margin vs 49.9%. WDC appears more attractively valued with a PEG of 0.49. TSM earns a higher WallStSmart Score of 86/100 (A).
TSM
Exceptional Buy86
out of 100
Grade: A
WDC
Strong Buy79
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+55.0%
Fair Value
$897.55
Current Price
$417.17
$480.38 discount
Intrinsic value data unavailable for WDC.
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
Growing faster than its price suggests
Every $100 of equity generates 67 in profit
Keeps 55 of every $100 in revenue as profit
Strong operational efficiency at 37.0%
Revenue surging 45.5% year-over-year
Earnings expanding 482.9% YoY
Areas to Watch
Premium valuation, high expectations priced in
Trading at 86.9x book value
Premium valuation, high expectations priced in
Distress zone — elevated risk
Trading at 24.8x 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 : WDC
The strongest argument for WDC centers on PEG Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 55.3% and operating margin at 37.0%. Revenue growth of 45.5% demonstrates continued momentum.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Bear Case : WDC
The primary concerns for WDC are P/E Ratio, Altman Z-Score, Price/Book.
Key Dynamics to Monitor
WDC carries more volatility with a beta of 2.17 — expect wider price swings.
WDC is growing revenue faster at 45.5% — 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 79/100), 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 →Western Digital Corporation
TECHNOLOGY · COMPUTER HARDWARE · USA
Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.
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