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 2026-07-17.
Applied Materials, Inc. · Technology
$603.04
-45.0% upside to fair value
Grade C
High Quality
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$409.74
+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
(38.8x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
TSM |
| Current Price |
$603.04 |
$409.74 |
| Fair Value Estimate |
$331.67 |
$594.12 |
| Upside to Fair Value |
-45.0%
|
+45.0%
|
| Market Cap |
$478.8B |
$2,125.1B |
| Forward P/E |
56.4x
|
38.8x
|
| EV / EBITDA |
43.0x
|
17.6x
|
| Price / Sales |
16.5x
|
14.5x
|
| Price / FCF |
80.3x
|
58.4x
|
| Revenue Growth YoY |
+11.4%
|
+36.0%
|
| Gross Margin |
49.0%
|
61.9%
|
| Operating Margin |
29.5%
|
53.2%
|
| Return on Equity |
39.8%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.25%
|
1.71%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Applied Materials, Inc. is a leading semiconductor equipment company with a strong competitive moat in multiple wafer fab equipment segments, driven by its scale, infrastructure, and technology leadership in AI-critical process steps. The company benefits from a seasoned management team led by CEO Gary Dickerson, who has over 12 years at the helm and a track record of strong revenue and profitabi…
Taiwan Semiconductor Manufacturing Company Limited (TSM) is a leading semiconductor foundry specializing in advanced chip manufacturing technologies. The company exhibits high business quality with a durable competitive moat driven by cost advantages, intangible assets, and strong brand recognition. It demonstrates robust profitability with a net margin of 47.0% and a return on equity of 36.9%. R…
Accumulation Zones
| Metric |
AMAT |
TSM |
| Zone Low |
$248.75 |
$445.59 |
| Zone High |
$281.92 |
$505.00 |
| In Buy Zone? |
No
|
Yes
|