ASML vs TSM: Which Is the Better Buy?
Side-by-side comparison of ASML Holding N.V. and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-22.
ASML Holding N.V. · Technology
$1,458.97
+45.0% upside to fair value
Grade B
High Quality
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$366.24
+45.0% upside to fair value
Grade C
High Quality
QuantHub Verdict
TSM trades at a lower forward P/E
(27.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
ASML |
TSM |
| Current Price |
$1,458.97 |
$366.24 |
| Fair Value Estimate |
$2,115.51 |
$531.05 |
| Upside to Fair Value |
+45.0%
|
+45.0%
|
| Market Cap |
$562.3B |
$1,899.5B |
| Forward P/E |
48.3x
|
27.2x
|
| EV / EBITDA |
37.6x
|
17.3x
|
| Price / Sales |
14.4x
|
12.8x
|
| Price / FCF |
54.4x
|
51.6x
|
| Revenue Growth YoY |
+13.2%
|
+36.5%
|
| Gross Margin |
52.6%
|
61.9%
|
| Operating Margin |
34.8%
|
53.2%
|
| Return on Equity |
52.0%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.84%
|
1.94%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
ASML Holding N.V. is a leading technology company specializing in semiconductor manufacturing equipment, particularly extreme ultraviolet lithography machines which hold a near-monopoly position. The company benefits from a durable competitive moat driven by its technological leadership, high barriers to entry, and strong demand from semiconductor manufacturers globally, especially in China. Desp…
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 |
ASML |
TSM |
| Zone Low |
$1,586.63 |
$398.29 |
| Zone High |
$1,798.18 |
$451.39 |
| In Buy Zone? |
Yes
|
Yes
|