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 2026-07-17.
Advanced Micro Devices, Inc. · Technology
$555.79
+24.0% upside to fair value
Grade B
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 |
AMD |
TSM |
| Current Price |
$555.79 |
$409.74 |
| Fair Value Estimate |
$689.29 |
$594.12 |
| Upside to Fair Value |
+24.0%
|
+45.0%
|
| Market Cap |
$906.3B |
$2,125.1B |
| Forward P/E |
177.7x
|
38.8x
|
| EV / EBITDA |
110.2x
|
17.6x
|
| Price / Sales |
24.1x
|
14.5x
|
| Price / FCF |
105.3x
|
58.4x
|
| Revenue Growth YoY |
+37.8%
|
+36.0%
|
| Gross Margin |
50.3%
|
61.9%
|
| Operating Margin |
11.7%
|
53.2%
|
| Return on Equity |
8.1%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
0.95%
|
1.71%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Advanced Micro Devices, Inc. (AMD) is a leading semiconductor company specializing in high-performance CPUs and GPUs with a competitive moat driven by technical innovation and ecosystem scale. Under CEO Dr. Lisa Su's leadership since 2014, AMD has transformed from a $2 billion market cap to over $90 billion, gaining significant market share from Intel and Nvidia. The company reported $34.6 billio…
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 |
AMD |
TSM |
| Zone Low |
$516.97 |
$445.59 |
| Zone High |
$585.90 |
$505.00 |
| In Buy Zone? |
Yes
|
Yes
|