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 2026-04-16.
Advanced Micro Devices, Inc. · Technology
$278.26
+40.5% upside to fair value
High Conviction Grade B+
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$365.90
-3.8% upside to fair value
Med Conviction Grade B+
QuantHub Verdict
AMD has more upside to fair value (+40.5%). TSM trades at a lower forward P/E (26.0x). These are model outputs — not personalized investment advice. See all research →
Valuation & Fundamentals
Metric AMD TSM
Current Price $278.26 $365.90
Fair Value Estimate $391.00 $352.00
Upside to Fair Value +40.5% -3.8%
Market Cap $453.7B $1,897.7B
Forward P/E 104.6x 26.0x
EV / EBITDA 18.1x
Price / Sales 13.1x 13.3x
Price / FCF 67.4x 54.0x
Revenue Growth YoY +11.1% +33.0%
Gross Margin 49.5% 59.9%
Operating Margin 10.7% 50.8%
Return on Equity 7.2% 35.1%
Dividend Yield 1.05%
FCF Yield 1.5% 1.85%
Analyst Consensus Strong Buy Strong Buy
Investment Thesis
AMD — Advanced Micro Devices, Inc.
AMD has solidified its position as a premier challenger to NVIDIA in AI GPUs and Intel in CPUs, fueled by explosive Data Center growth reaching $16.6 billion in 2025, up 32% year-over-year, alongside robust Client and Gaming expansion to $14.6 billion, up 51%. Under CEO Lisa Su's leadership, the company achieved 34% total revenue growth to $34.6 billion in 2025 with net income of $4.3 billion, ye…
TSM — Taiwan Semiconductor Manufacturing Company Limited
TSMC remains the single most critical company in the global semiconductor supply chain, manufacturing virtually every leading-edge AI chip for NVIDIA, Apple, AMD, and the hyperscalers. The company delivered exceptional 2025 results with 33% revenue growth and 50% net income growth, driven by HPC surging to 55% of Q4 revenue. At the 3nm node, TSMC maintains production yields of 70-80% versus Samsu…
Accumulation Zones
Metric AMD TSM
Zone Low $293.00 $265.00
Zone High $332.00 $310.00
In Buy Zone? Yes No
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