AMAT vs TSM: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-20.
Applied Materials, Inc. · Technology
$406.91
-12.0% upside to fair value
Grade B-
High Quality
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$366.24
+45.0% upside to fair value
Grade C
High Quality
QuantHub Verdict
TSM has more upside to fair value
(+45.0%).
TSM trades at a lower forward P/E
(27.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
TSM |
| Current Price |
$406.91 |
$366.24 |
| Fair Value Estimate |
$358.00 |
$531.05 |
| Upside to Fair Value |
-12.0%
|
+45.0%
|
| Market Cap |
$322.9B |
$1,899.5B |
| Forward P/E |
30.3x
|
27.2x
|
| EV / EBITDA |
30.2x
|
17.3x
|
| Price / Sales |
10.2x
|
12.8x
|
| Price / FCF |
51.6x
|
51.6x
|
| Revenue Growth YoY |
+11.0%
|
+36.5%
|
| Gross Margin |
49.9%
|
61.9%
|
| Operating Margin |
31.9%
|
53.2%
|
| Return on Equity |
47.0%
|
36.9%
|
| Dividend Yield |
0.45% |
0% |
| FCF Yield |
1.94%
|
1.94%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Applied Materials is the world's leading semiconductor and display equipment company, and the May 14 Q2 fiscal 2026 print materially strengthened the operating story. Revenue grew 11 percent year over year to a record $7.91 billion, non-GAAP earnings per share of $2.86 beat consensus of $2.68, and management guided Q3 to a record $8.95 billion in revenue with non-GAAP earnings per share of $3.36 …
Taiwan Semiconductor Manufacturing Company Limited (TSMC) is the world's leading pure-play semiconductor foundry, commanding approximately 60% of the global advanced node foundry market. The company benefits from a durable competitive moat driven by its pioneering foundry model, massive scale, advanced manufacturing capabilities, and strong customer relationships with major technology firms. TSMC…
Accumulation Zones
| Metric |
AMAT |
TSM |
| Zone Low |
$268.50 |
$398.29 |
| Zone High |
$304.30 |
$451.39 |
| In Buy Zone? |
No
|
Yes
|