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 2026-09-24.
ASML Holding N.V. · Technology
$1,744.61
-0.7% upside to fair value
Med Conviction
Grade C
High Quality
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$452.00
+13.9% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
TSM has more upside to fair value
(+13.9%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
ASML |
TSM |
| Current Price |
$1,744.61 |
$452.00 |
| Fair Value Estimate |
$1,732.49 |
$515.00 |
| Upside to Fair Value |
-0.7%
|
+13.9%
|
| Market Cap |
$672.4B |
$2,344.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
42.0x
|
19.2x
|
| Price / Sales |
19.0x
|
0.5x
|
| Price / FCF |
67.2x
|
2.1x
|
| Revenue Growth YoY |
+21.3%
|
+36.0%
|
| Gross Margin |
52.7%
|
64.2%
|
| Operating Margin |
35.4%
|
56.0%
|
| Return on Equity |
52.4%
|
39.3%
|
| Dividend Yield |
0.51% |
0.96% |
| FCF Yield |
1.49%
|
47.62%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
ASML Holding N.V. is the Dutch semiconductor equipment maker that supplies lithography, metrology, and inspection systems, including the extreme ultraviolet (EUV) machines required to pattern the most advanced logic and memory chips, and it holds what current coverage describes as a near-monopoly on those EUV tools. The business quality is genuinely high: TTM gross margin of 52.7%, TTM operating …
Taiwan Semiconductor Manufacturing Company is the world's largest contract chipmaker, manufacturing advanced logic, mixed-signal, RF, and embedded memory wafers for high-performance computing, smartphones, IoT, and automotive customers from a base of 65,152 employees headquartered in Hsinchu, Taiwan. The business quality is exceptionally high: TTM gross margin is 64.2%, TTM operating margin is 56…
Accumulation Zones
| Metric |
ASML |
TSM |
| Zone Low |
$1,299.37 |
$386.25 |
| Zone High |
$1,472.62 |
$437.75 |
| In Buy Zone? |
No
|
No
|