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 2026-09-26.
QUALCOMM Incorporated · Technology
$201.97
-21.1% upside to fair value
Med Conviction
Grade D
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
TSM has more upside to fair value
(+13.9%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
QCOM |
TSM |
| Current Price |
$201.97 |
$452.00 |
| Fair Value Estimate |
$159.42 |
$515.00 |
| Upside to Fair Value |
-21.1%
|
+13.9%
|
| Market Cap |
$212.1B |
$2,344.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
16.5x
|
19.2x
|
| Price / Sales |
4.8x
|
0.5x
|
| Price / FCF |
20.5x
|
2.1x
|
| Revenue Growth YoY |
-4.0%
|
+36.0%
|
| Gross Margin |
54.2%
|
64.2%
|
| Operating Margin |
23.2%
|
56.0%
|
| Return on Equity |
37.3%
|
39.3%
|
| Dividend Yield |
1.79% |
0.96% |
| FCF Yield |
4.88%
|
47.62%
|
| Analyst Consensus |
Hold
|
Buy
|
Investment Thesis
Qualcomm develops foundational wireless technologies and monetizes them through two main engines: QCT, which supplies Snapdragon application processors and modems, and QTL, which licenses a standards-essential patent portfolio covering CDMA2000, WCDMA, LTE and 5G. The licensing arm and the company's entrenched position in premium Android handsets give it a genuinely high-quality business, evidenc…
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 |
QCOM |
TSM |
| Zone Low |
$119.56 |
$386.25 |
| Zone High |
$135.51 |
$437.75 |
| In Buy Zone? |
No
|
No
|