MSFT vs TSM: Which Is the Better Buy?
Side-by-side comparison of Microsoft Corporation and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-08.
Microsoft Corporation · Technology
$372.20
+32.4% upside to fair value
High Conviction
Grade A
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$365.90
-3.8% upside to fair value
Med Conviction
Grade B+
QuantHub Verdict
MSFT has more upside to fair value
(+32.4%).
MSFT trades at a lower forward P/E
(22.0x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
MSFT |
TSM |
| Current Price |
$372.20 |
$365.90 |
| Fair Value Estimate |
$493.00 |
$352.00 |
| Upside to Fair Value |
+32.4%
|
-3.8%
|
| Market Cap |
$2,763.6B |
$1,897.7B |
| Forward P/E |
22.0x
|
26.0x
|
| EV / EBITDA |
17.5x
|
18.1x
|
| Price / Sales |
9.1x
|
13.3x
|
| Price / FCF |
35.8x
|
54.0x
|
| Revenue Growth YoY |
+14.9%
|
+33.0%
|
| Gross Margin |
68.8%
|
59.9%
|
| Operating Margin |
45.6%
|
50.8%
|
| Return on Equity |
29.6%
|
35.1%
|
| Dividend Yield |
0.94% |
1.05% |
| FCF Yield |
2.8%
|
1.85%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Microsoft is the world's largest software company, operating a three-pillar empire across cloud (Azure), productivity (Office 365/Teams), and personal computing (Windows/Xbox). Azure is the second-largest cloud platform globally with 24% market share and growing at 38-39% in constant currency, while Microsoft Cloud revenue crossed $168.9B in FY2025. The stock has dropped 33% from its highs to $37…
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 |
MSFT |
TSM |
| Zone Low |
$370.00 |
$265.00 |
| Zone High |
$419.00 |
$310.00 |
| In Buy Zone? |
Yes
|
No
|