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 2026-09-26.
NVIDIA Corporation · Technology
$225.07
+45.0% upside to fair value
Med Conviction
Grade B
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
NVDA has more upside to fair value
(+45.0%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
NVDA |
TSM |
| Current Price |
$225.07 |
$452.00 |
| Fair Value Estimate |
$326.35 |
$515.00 |
| Upside to Fair Value |
+45.0%
|
+13.9%
|
| Market Cap |
$5,451.4B |
$2,344.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
23.4x
|
19.2x
|
| Price / Sales |
18.0x
|
0.5x
|
| Price / FCF |
42.9x
|
2.1x
|
| Revenue Growth YoY |
+105.9%
|
+36.0%
|
| Gross Margin |
74.7%
|
64.2%
|
| Operating Margin |
65.2%
|
56.0%
|
| Return on Equity |
110.1%
|
39.3%
|
| Dividend Yield |
0.23% |
0.96% |
| FCF Yield |
2.33%
|
47.62%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
NVIDIA designs the accelerated computing platforms at the center of the AI buildout, spanning data center GPUs, Mellanox networking, AI enterprise software, gaming GeForce GPUs, professional visualization, and automotive platforms, with 42,000 employees and a $5.45 trillion market capitalization. Business quality is exceptional on the fundamentals: TTM gross margin of 74.7%, TTM operating margin …
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 |
NVDA |
TSM |
| Zone Low |
$244.76 |
$386.25 |
| Zone High |
$277.40 |
$437.75 |
| In Buy Zone? |
Yes
|
No
|