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 2026-07-17.
Microsoft Corporation · Technology
$379.40
+45.0% upside to fair value
Grade A
High Quality
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$409.74
+45.0% upside to fair value
Grade C
High Quality
QuantHub Verdict
MSFT trades at a lower forward P/E
(22.5x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
MSFT |
TSM |
| Current Price |
$379.40 |
$409.74 |
| Fair Value Estimate |
$550.13 |
$594.12 |
| Upside to Fair Value |
+45.0%
|
+45.0%
|
| Market Cap |
$2,818.3B |
$2,125.1B |
| Forward P/E |
22.5x
|
38.8x
|
| EV / EBITDA |
14.2x
|
17.6x
|
| Price / Sales |
8.9x
|
14.5x
|
| Price / FCF |
38.6x
|
58.4x
|
| Revenue Growth YoY |
+18.3%
|
+36.0%
|
| Gross Margin |
68.3%
|
61.9%
|
| Operating Margin |
46.8%
|
53.2%
|
| Return on Equity |
33.1%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.59%
|
1.71%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Microsoft Corporation is a leading global technology company specializing in cloud computing, productivity software, and enterprise platforms. The company benefits from a very strong and widening competitive moat supported by scale, switching costs, an integrated ecosystem, and disciplined capital allocation including large buybacks and dividends. Its business quality is high, demonstrated by a 3…
Taiwan Semiconductor Manufacturing Company Limited (TSM) is a leading semiconductor foundry specializing in advanced chip manufacturing technologies. The company exhibits high business quality with a durable competitive moat driven by cost advantages, intangible assets, and strong brand recognition. It demonstrates robust profitability with a net margin of 47.0% and a return on equity of 36.9%. R…
Accumulation Zones
| Metric |
MSFT |
TSM |
| Zone Low |
$412.60 |
$445.59 |
| Zone High |
$467.61 |
$505.00 |
| In Buy Zone? |
Yes
|
Yes
|