ANET vs TSM: Which Is the Better Buy?
Side-by-side comparison of Arista Networks, Inc. and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-22.
Arista Networks, Inc. · Technology
$172.86
+82.8% upside to fair value
Grade C
High Quality
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$366.24
+5153.7% upside to fair value
Grade C
High Quality
QuantHub Verdict
TSM has more upside to fair value
(+5153.7%).
TSM trades at a lower forward P/E
(27.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
ANET |
TSM |
| Current Price |
$172.86 |
$366.24 |
| Fair Value Estimate |
$316.03 |
$19,241.17 |
| Upside to Fair Value |
+82.8%
|
+5153.7%
|
| Market Cap |
$217.7B |
$1,899.5B |
| Forward P/E |
61.9x
|
27.2x
|
| EV / EBITDA |
54.9x
|
17.3x
|
| Price / Sales |
24.2x
|
12.8x
|
| Price / FCF |
51.2x
|
51.6x
|
| Revenue Growth YoY |
+28.9%
|
+36.5%
|
| Gross Margin |
64.1%
|
61.9%
|
| Operating Margin |
42.8%
|
53.2%
|
| Return on Equity |
31.0%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.95%
|
1.94%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Arista Networks is a leading provider of high-speed data center networking hardware and software, specializing in Ethernet switches and cloud networking solutions. The company benefits from strong revenue growth driven by AI and hyperscale cloud demand, with 28.9% revenue growth and 19.3% earnings growth in the most recent quarter. High margins, including a 64.1% gross margin and 42.8% operating …
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 |
ANET |
TSM |
| Zone Low |
$237.02 |
$14,430.88 |
| Zone High |
$268.63 |
$16,354.99 |
| In Buy Zone? |
Yes
|
Yes
|