QCOM vs TSM: Which Is the Better Buy?

Side-by-side comparison of QUALCOMM Incorporated and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-04-16.
QUALCOMM Incorporated · Technology
$134.47
+77.7% upside to fair value
Med Conviction Grade B
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$365.90
-3.8% upside to fair value
Med Conviction Grade B+
QuantHub Verdict
QCOM has more upside to fair value (+77.7%). TSM trades at a lower forward P/E (26.0x). These are model outputs — not personalized investment advice. See all research →
Valuation & Fundamentals
Metric QCOM TSM
Current Price $134.47 $365.90
Fair Value Estimate $239.00 $352.00
Upside to Fair Value +77.7% -3.8%
Market Cap $143.6B $1,897.7B
Forward P/E 26.8x 26.0x
EV / EBITDA 18.1x
Price / Sales 3.2x 13.3x
Price / FCF 11.1x 54.0x
Revenue Growth YoY +8.7% +33.0%
Gross Margin 55.1% 59.9%
Operating Margin 27.1% 50.8%
Return on Equity 21.6% 35.1%
Dividend Yield 1.05%
FCF Yield 9.0% 1.85%
Analyst Consensus Hold Strong Buy
Investment Thesis
QCOM — QUALCOMM Incorporated
Qualcomm Incorporated is a leading semiconductor company specializing in wireless chipsets and IP licensing, with dominant positions in 5G modems via QCT (87% of revenue) and steady QTL royalties. The business excels through a vast patent moat, diversification into automotive and IoT, and robust growth (revenue +13% YoY to $44B in FY2025), but faces risks from Apple modem shifts and China exposur…
TSM — Taiwan Semiconductor Manufacturing Company Limited
TSMC remains the single most critical company in the global semiconductor supply chain, manufacturing virtually every leading-edge AI chip for NVIDIA, Apple, AMD, and the hyperscalers. The company delivered exceptional 2025 results with 33% revenue growth and 50% net income growth, driven by HPC surging to 55% of Q4 revenue. At the 3nm node, TSMC maintains production yields of 70-80% versus Samsu…
Accumulation Zones
Metric QCOM TSM
Zone Low $179.00 $265.00
Zone High $203.00 $310.00
In Buy Zone? Yes No
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