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 2026-04-29.
Microsoft Corporation · Technology
$429.25
-1.3% upside to fair value
Grade B
High Quality
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$366.24
+45.0% upside to fair value
Grade C
High Quality
QuantHub Verdict
TSM has more upside to fair value
(+45.0%).
MSFT trades at a lower forward P/E
(26.8x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
MSFT |
TSM |
| Current Price |
$429.25 |
$366.24 |
| Fair Value Estimate |
$423.82 |
$531.05 |
| Upside to Fair Value |
-1.3%
|
+45.0%
|
| Market Cap |
$3,187.4B |
$1,899.5B |
| Forward P/E |
26.8x
|
27.2x
|
| EV / EBITDA |
17.2x
|
17.3x
|
| Price / Sales |
10.4x
|
12.8x
|
| Price / FCF |
41.2x
|
51.6x
|
| Revenue Growth YoY |
+16.7%
|
+36.5%
|
| Gross Margin |
68.6%
|
61.9%
|
| Operating Margin |
46.7%
|
53.2%
|
| Return on Equity |
33.6%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.43%
|
1.94%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Microsoft Corporation is a leading technology company specializing in software infrastructure, cloud computing, and productivity solutions. The company benefits from a high-quality business model characterized by durable competitive moats including strong switching costs and intangible assets such as its brand and cloud infrastructure. Under CEO Satya Nadella's leadership since 2014, Microsoft ha…
Taiwan Semiconductor Manufacturing Company Limited (TSMC) is the world's leading pure-play semiconductor foundry, commanding approximately 60% of the global advanced node foundry market. The company benefits from a durable competitive moat driven by its pioneering foundry model, massive scale, advanced manufacturing capabilities, and strong customer relationships with major technology firms. TSMC…
Accumulation Zones
| Metric |
MSFT |
TSM |
| Zone Low |
$317.87 |
$398.29 |
| Zone High |
$360.25 |
$451.39 |
| In Buy Zone? |
No
|
Yes
|