AMD vs TSM: Which Is the Better Buy?
Side-by-side comparison of Advanced Micro Devices, Inc. and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-05.
Advanced Micro Devices, Inc. · Technology
$341.54
+38.2% upside to fair value
Grade C
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 |
AMD |
TSM |
| Current Price |
$341.54 |
$366.24 |
| Fair Value Estimate |
$472.05 |
$531.05 |
| Upside to Fair Value |
+38.2%
|
+45.0%
|
| Market Cap |
$556.9B |
$1,899.5B |
| Forward P/E |
128.4x
|
27.2x
|
| EV / EBITDA |
76.3x
|
17.3x
|
| Price / Sales |
16.1x
|
12.8x
|
| Price / FCF |
82.7x
|
51.6x
|
| Revenue Growth YoY |
+34.1%
|
+36.5%
|
| Gross Margin |
49.5%
|
61.9%
|
| Operating Margin |
10.7%
|
53.2%
|
| Return on Equity |
7.2%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.21%
|
1.94%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
Advanced Micro Devices, Inc. is a leading semiconductor company specializing in high-performance computing products including CPUs and GPUs, with a strong foothold in data center, client, gaming, and embedded markets. The company benefits from a durable competitive moat driven by its technology leadership in Zen/Ryzen CPUs and graphics processors, as well as strategic diversification through the …
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 |
AMD |
TSM |
| Zone Low |
$354.04 |
$398.29 |
| Zone High |
$401.24 |
$451.39 |
| In Buy Zone? |
Yes
|
Yes
|