DDOG vs TSM: Which Is the Better Buy?
Side-by-side comparison of Datadog, Inc. and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-10.
Datadog, Inc. · Technology
$104.77
+55.6% upside to fair value
Grade B
High Quality
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$365.90
-3.8% upside to fair value
Med Conviction
Grade B+
QuantHub Verdict
DDOG has more upside to fair value
(+55.6%).
TSM trades at a lower forward P/E
(26.0x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
DDOG |
TSM |
| Current Price |
$104.77 |
$365.90 |
| Fair Value Estimate |
$163.01 |
$352.00 |
| Upside to Fair Value |
+55.6%
|
-3.8%
|
| Market Cap |
$37.1B |
$1,897.7B |
| Forward P/E |
341.2x
|
26.0x
|
| EV / EBITDA |
168.3x
|
18.1x
|
| Price / Sales |
10.8x
|
13.3x
|
| Price / FCF |
37.0x
|
54.0x
|
| Revenue Growth YoY |
+7.6%
|
+33.0%
|
| Gross Margin |
79.9%
|
59.9%
|
| Operating Margin |
-1.3%
|
50.8%
|
| Return on Equity |
3.2%
|
35.1%
|
| Dividend Yield |
0% |
1.05% |
| FCF Yield |
2.7%
|
1.85%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Datadog, Inc. is a leading cloud-based monitoring and analytics platform specializing in observability and security for cloud-native, microservices, and AI applications. The company benefits from strong product-market fit driven by extensive integrations and a customer-centric approach, reflected in 26% revenue growth to $3.43 billion in fiscal 2025 and 37.4% earnings growth year-over-year. Despi…
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 |
DDOG |
TSM |
| Zone Low |
$122.26 |
$265.00 |
| Zone High |
$138.56 |
$310.00 |
| In Buy Zone? |
Yes
|
No
|