AMZN vs TSM: Which Is the Better Buy?

Side-by-side comparison of Amazon.com, Inc. and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-04-10.
Amazon.com, Inc. · Consumer Cyclical
$238.12
+59.3% upside to fair value
Grade B High Quality
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$365.90
-3.8% upside to fair value
Med Conviction Grade B+
QuantHub Verdict
AMZN has more upside to fair value (+59.3%). TSM trades at a lower forward P/E (26.0x). These are model outputs — not personalized investment advice. See all research →
Valuation & Fundamentals
Metric AMZN TSM
Current Price $238.12 $365.90
Fair Value Estimate $379.40 $352.00
Upside to Fair Value +59.3% -3.8%
Market Cap $2,556.2B $1,897.7B
Forward P/E 32.8x 26.0x
EV / EBITDA 15.9x 18.1x
Price / Sales 3.6x 13.3x
Price / FCF 332.2x 54.0x
Revenue Growth YoY +18.4% +33.0%
Gross Margin 50.3% 59.9%
Operating Margin 11.2% 50.8%
Return on Equity 21.9% 35.1%
Dividend Yield 0% 1.05%
FCF Yield 0.3% 1.85%
Analyst Consensus Strong Buy Strong Buy
Investment Thesis
AMZN — Amazon.com, Inc.
Amazon.com, Inc. operates as the world's largest e-commerce and cloud computing company, with a diversified revenue base spanning online retail, third-party seller services, AWS cloud, advertising, and subscription services. The business quality is high due to its durable competitive moats including AWS's leadership in cloud infrastructure and Amazon's dominant e-commerce platform. Despite strong…
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 AMZN TSM
Zone Low $284.55 $265.00
Zone High $322.49 $310.00
In Buy Zone? Yes No
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