NVDA vs TSM: Which Is the Better Buy?
Side-by-side comparison of NVIDIA Corporation and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-21.
NVIDIA Corporation · Technology
$219.76
+45.0% 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 trades at a lower forward P/E
(27.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
NVDA |
TSM |
| Current Price |
$219.76 |
$366.24 |
| Fair Value Estimate |
$318.65 |
$531.05 |
| Upside to Fair Value |
+45.0%
|
+45.0%
|
| Market Cap |
$5,322.7B |
$1,899.5B |
| Forward P/E |
33.4x
|
27.2x
|
| EV / EBITDA |
27.6x
|
17.3x
|
| Price / Sales |
21.0x
|
12.8x
|
| Price / FCF |
44.7x
|
51.6x
|
| Revenue Growth YoY |
+85.2%
|
+36.5%
|
| Gross Margin |
74.1%
|
61.9%
|
| Operating Margin |
64.0%
|
53.2%
|
| Return on Equity |
111.7%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.24%
|
1.94%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
NVIDIA Corporation is a leading technology company specializing in semiconductors, primarily known for its GPUs and AI accelerators that power gaming, data center, and professional visualization markets. The company benefits from a durable competitive moat driven by its founder-led management, strong insider alignment, and dominant market share in AI data center chips. NVIDIA's business quality i…
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 |
NVDA |
TSM |
| Zone Low |
$238.99 |
$398.29 |
| Zone High |
$270.85 |
$451.39 |
| In Buy Zone? |
Yes
|
Yes
|