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 2026-07-17.
Arista Networks, Inc. · Technology
$169.86
+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%).
TSM trades at a lower forward P/E
(38.8x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
ANET |
TSM |
| Current Price |
$169.86 |
$409.74 |
| Fair Value Estimate |
$207.23 |
$594.12 |
| Upside to Fair Value |
+22.0%
|
+45.0%
|
| Market Cap |
$213.9B |
$2,125.1B |
| Forward P/E |
56.5x
|
38.8x
|
| EV / EBITDA |
44.7x
|
17.6x
|
| Price / Sales |
21.7x
|
14.5x
|
| Price / FCF |
39.9x
|
58.4x
|
| Revenue Growth YoY |
+35.1%
|
+36.0%
|
| Gross Margin |
63.5%
|
61.9%
|
| Operating Margin |
42.8%
|
53.2%
|
| Return on Equity |
30.6%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.51%
|
1.71%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Arista Networks is a leading provider of cloud and AI data-center switching solutions with a durable competitive moat driven by its strong presence among hyperscale cloud customers and AI networking providers. The company benefits from a seasoned management team led by founding CEO Jayshree V. Ullal, who has over 17 years at the helm and deep domain expertise. Arista's financials show robust grow…
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 |
ANET |
TSM |
| Zone Low |
$155.42 |
$445.59 |
| Zone High |
$176.15 |
$505.00 |
| In Buy Zone? |
Yes
|
Yes
|