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 2026-09-23.
Microsoft Corporation · Technology
$497.12
+41.3% upside to fair value
High Conviction
Grade A
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
MSFT has more upside to fair value
(+41.3%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
MSFT |
TSM |
| Current Price |
$497.12 |
$452.00 |
| Fair Value Estimate |
$702.35 |
$515.00 |
| Upside to Fair Value |
+41.3%
|
+13.9%
|
| Market Cap |
$3,691.4B |
$2,344.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
18.3x
|
19.2x
|
| Price / Sales |
11.1x
|
0.5x
|
| Price / FCF |
55.1x
|
2.1x
|
| Revenue Growth YoY |
+17.7%
|
+36.0%
|
| Gross Margin |
67.9%
|
64.2%
|
| Operating Margin |
46.8%
|
56.0%
|
| Return on Equity |
33.2%
|
39.3%
|
| Dividend Yield |
0.73% |
0.96% |
| FCF Yield |
1.81%
|
47.62%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Microsoft is a global infrastructure-software platform spanning Azure, Microsoft 365, security, Dynamics, Windows, GitHub and AI copilots, with high business quality supported by enterprise distribution, explicitly cited switching costs, a $678 billion commercial RPO balance, 67.9% TTM gross margin, 46.8% TTM operating margin, 40.3% TTM net margin and 33.2% ROE. Revenue grew 17.7% and earnings gr…
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 |
MSFT |
TSM |
| Zone Low |
$526.76 |
$386.25 |
| Zone High |
$597.00 |
$437.75 |
| In Buy Zone? |
Yes
|
No
|