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 2026-07-17.
Amazon.com, Inc. · Consumer Cyclical
$242.67
+22.0% upside to fair value
Grade B
High Quality
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%).
AMZN trades at a lower forward P/E
(28.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMZN |
TSM |
| Current Price |
$242.67 |
$409.74 |
| Fair Value Estimate |
$295.95 |
$594.12 |
| Upside to Fair Value |
+22.0%
|
+45.0%
|
| Market Cap |
$2,610.4B |
$2,125.1B |
| Forward P/E |
28.7x
|
38.8x
|
| EV / EBITDA |
14.4x
|
17.6x
|
| Price / Sales |
3.5x
|
14.5x
|
| Price / FCF |
-1056.0x
|
58.4x
|
| Revenue Growth YoY |
+16.6%
|
+36.0%
|
| Gross Margin |
50.6%
|
61.9%
|
| Operating Margin |
11.5%
|
53.2%
|
| Return on Equity |
23.3%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
—
|
1.71%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Amazon.com, Inc. operates a diversified platform with core engines in retail, AWS cloud services, and advertising, leveraging a strong competitive moat driven by scale, logistics, and technology leadership. The company exhibits high business quality with 23.3% ROE, 16.6% revenue growth, and 76.7% earnings growth in the most recent quarter, supported by a widening moat in e-commerce and cloud. Des…
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 |
AMZN |
TSM |
| Zone Low |
$221.96 |
$445.59 |
| Zone High |
$251.56 |
$505.00 |
| In Buy Zone? |
Yes
|
Yes
|