AVGO vs TSM: Which Is the Better Buy?

Side-by-side comparison of Broadcom Inc. and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-04-10.
Broadcom Inc. · Technology
$371.59
-49.9% upside to fair value
Grade C High Quality
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$365.90
-3.8% upside to fair value
Med Conviction Grade B+
QuantHub Verdict
TSM has more upside to fair value (-3.8%). TSM trades at a lower forward P/E (26.0x). These are model outputs — not personalized investment advice. See all research →
Valuation & Fundamentals
Metric AVGO TSM
Current Price $371.59 $365.90
Fair Value Estimate $186.35 $352.00
Upside to Fair Value -49.9% -3.8%
Market Cap $1,761.8B $1,897.7B
Forward P/E 70.7x 26.0x
EV / EBITDA 46.7x 18.1x
Price / Sales 25.9x 13.3x
Price / FCF 61.1x 54.0x
Revenue Growth YoY +7.2% +33.0%
Gross Margin 67.1% 59.9%
Operating Margin 40.9% 50.8%
Return on Equity 32.9% 35.1%
Dividend Yield 0% 1.05%
FCF Yield 1.64% 1.85%
Analyst Consensus Strong Buy Strong Buy
Investment Thesis
AVGO — Broadcom Inc.
Broadcom Inc. is a leading technology company specializing in semiconductors and infrastructure software, with a strong competitive moat driven by scale, diversification, and aggressive M&A under CEO Hock E. Tan. The company has demonstrated robust revenue growth, particularly in semiconductor solutions and infrastructure software segments, with a 25% year-over-year increase recently and a five-y…
TSM — Taiwan Semiconductor Manufacturing Company Limited
TSMC remains the single most critical company in the global semiconductor supply chain, manufacturing virtually every leading-edge AI chip for NVIDIA, Apple, AMD, and the hyperscalers. The company delivered exceptional 2025 results with 33% revenue growth and 50% net income growth, driven by HPC surging to 55% of Q4 revenue. At the 3nm node, TSMC maintains production yields of 70-80% versus Samsu…
Accumulation Zones
Metric AVGO TSM
Zone Low $139.76 $265.00
Zone High $158.40 $310.00
In Buy Zone? No No
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