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 2026-09-24.
Applied Materials, Inc. · Technology
$474.38
-3.5% upside to fair value
Med Conviction
Grade C
High Quality
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$452.00
+13.9% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
TSM has more upside to fair value
(+13.9%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
AMAT |
TSM |
| Current Price |
$474.38 |
$452.00 |
| Fair Value Estimate |
$457.95 |
$515.00 |
| Upside to Fair Value |
-3.5%
|
+13.9%
|
| Market Cap |
$376.6B |
$2,344.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
33.1x
|
19.2x
|
| Price / Sales |
12.2x
|
0.5x
|
| Price / FCF |
67.0x
|
2.1x
|
| Revenue Growth YoY |
+24.8%
|
+36.0%
|
| Gross Margin |
49.4%
|
64.2%
|
| Operating Margin |
30.5%
|
56.0%
|
| Return on Equity |
40.4%
|
39.3%
|
| Dividend Yield |
0.42% |
0.96% |
| FCF Yield |
1.49%
|
47.62%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Applied Materials is the largest supplier of wafer fabrication equipment, providing deposition, etch, ion implantation, and process-control tools alongside a growing Applied Global Services aftermarket business to semiconductor manufacturers worldwide. The business quality is high: TTM gross margin of 49.4%, TTM operating margin of 30.5%, TTM net margin of 30.1%, and ROE of 40.4% reflect a durabl…
Taiwan Semiconductor Manufacturing Company is the world's largest contract chipmaker, manufacturing advanced logic, mixed-signal, RF, and embedded memory wafers for high-performance computing, smartphones, IoT, and automotive customers from a base of 65,152 employees headquartered in Hsinchu, Taiwan. The business quality is exceptionally high: TTM gross margin is 64.2%, TTM operating margin is 56…
Accumulation Zones
| Metric |
AMAT |
TSM |
| Zone Low |
$343.46 |
$386.25 |
| Zone High |
$389.26 |
$437.75 |
| In Buy Zone? |
No
|
No
|