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 2026-04-22.
Applied Materials, Inc. · Technology
$394.33
-58.9% upside to fair value
Grade C
High Quality
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$366.24
+5153.7% upside to fair value
Grade C
High Quality
QuantHub Verdict
TSM has more upside to fair value
(+5153.7%).
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 |
$394.33 |
$366.24 |
| Fair Value Estimate |
$162.08 |
$19,241.17 |
| Upside to Fair Value |
-58.9%
|
+5153.7%
|
| Market Cap |
$312.9B |
$1,899.5B |
| Forward P/E |
39.9x
|
27.2x
|
| EV / EBITDA |
31.6x
|
17.3x
|
| Price / Sales |
11.1x
|
12.8x
|
| Price / FCF |
50.5x
|
51.6x
|
| Revenue Growth YoY |
-2.1%
|
+36.5%
|
| Gross Margin |
48.7%
|
61.9%
|
| Operating Margin |
29.1%
|
53.2%
|
| Return on Equity |
38.9%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.98%
|
1.94%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Applied Materials, Inc. is a leading global provider of semiconductor and display equipment, specializing in materials engineering solutions critical to chip manufacturing. The company benefits from a durable competitive moat supported by its market leadership, innovation engine with over 8,500 patents since 2013, and a strong management team led by CEO Gary E. Dickerson. Despite these strengths,…
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 |
$121.56 |
$14,430.88 |
| Zone High |
$137.77 |
$16,354.99 |
| In Buy Zone? |
No
|
Yes
|