WallStSmart

Taiwan Semiconductor Manufacturing (TSM)vsWolfspeed, Inc. (WOLF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 509336% more annual revenue ($3.81T vs $747.70M). TSM leads profitability with a 45.1% profit margin vs -91.6%. TSM appears more attractively valued with a PEG of 1.17. TSM earns a higher WallStSmart Score of 82/100 (A-).

TSM

Exceptional Buy

82

out of 100

Grade: A-

Growth: 8.7Profit: 10.0Value: 9.3Quality: 9.0
Piotroski: 6/9Altman Z: 3.86

WOLF

Hold

37

out of 100

Grade: F

Growth: 4.0Profit: 2.0Value: 4.0Quality: 4.5
Piotroski: 2/9Altman Z: -2.24
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

TSMUndervalued (+20.3%)

Margin of Safety

+20.3%

Fair Value

$483.91

Current Price

$347.75

$136.16 discount

UndervaluedFair: $483.91Overvalued

Intrinsic value data unavailable for WOLF.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$1.71T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.1%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
45.1%10/10

Keeps 45 of every $100 in revenue as profit

Operating MarginProfitability
53.9%10/10

Strong operational efficiency at 53.9%

Free Cash FlowQuality
$388.17B10/10

Generating 388.2B in free cash flow

Altman Z-ScoreHealth
3.8610/10

Safe zone — low bankruptcy risk

WOLF1 strengths · Avg: 10.0/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Areas to Watch

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
31.8x4/10

Premium valuation, high expectations priced in

Price/BookValuation
52.9x2/10

Trading at 52.9x book value

WOLF4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$751.63M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.552/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : TSM

The strongest argument for TSM centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 45.1% and operating margin at 53.9%. Revenue growth of 20.5% demonstrates continued momentum.

Bull Case : WOLF

The strongest argument for WOLF centers on Price/Book.

Bear Case : TSM

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

Bear Case : WOLF

The primary concerns for WOLF are EPS Growth, Market Cap, Piotroski F-Score. Debt-to-equity of 3.13 is elevated, increasing financial risk.

Key Dynamics to Monitor

TSM profiles as a growth stock while WOLF is a turnaround play — different risk/reward profiles.

TSM is growing revenue faster at 20.5% — sustainability is the question.

TSM generates stronger free cash flow (388.2B), providing more financial flexibility.

Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TSM scores higher overall (82/100 vs 37/100), backed by strong 45.1% margins and 20.5% revenue growth. Both earn "Exceptional Buy" and "Hold" 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.

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Wolfspeed, Inc.

TECHNOLOGY · SEMICONDUCTORS · USA

Wolfspeed, Inc. is a leading semiconductor company specializing in silicon carbide (SiC) and gallium nitride (GaN) technologies, which are pivotal for the advancement of high-performance applications in electric vehicles, 5G communications, and renewable energy sectors. The firm leverages its proprietary innovations in wide bandgap semiconductor materials to drive energy efficiency and enhance power conversion capabilities, strategically positioning itself within the burgeoning sustainable energy market. With a strong focus on innovation and scalability, Wolfspeed is well-prepared to capitalize on the increasing demand for next-generation semiconductor solutions, making it an attractive investment opportunity for institutional investors.

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