SMCI vs TSM: Which Is the Better Buy?

Side-by-side comparison of Super Micro Computer, Inc. and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-04-18.
Super Micro Computer, Inc. · Technology
$28.56
+435.6% upside to fair value
Grade B
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$365.90
-3.8% upside to fair value
Med Conviction Grade B+
QuantHub Verdict
SMCI has more upside to fair value (+435.6%). SMCI trades at a lower forward P/E (19.5x). These are model outputs — not personalized investment advice. See all research →
Valuation & Fundamentals
Metric SMCI TSM
Current Price $28.56 $365.90
Fair Value Estimate $152.97 $352.00
Upside to Fair Value +435.6% -3.8%
Market Cap $17.1B $1,897.7B
Forward P/E 19.5x 26.0x
EV / EBITDA 15.0x 18.1x
Price / Sales 0.6x 13.3x
Price / FCF 38.9x 54.0x
Revenue Growth YoY +152.8% +33.0%
Gross Margin 8.0% 59.9%
Operating Margin 3.7% 50.8%
Return on Equity 13.3% 35.1%
Dividend Yield 0% 1.05%
FCF Yield 2.57% 1.85%
Analyst Consensus Hold Strong Buy
Investment Thesis
SMCI — Super Micro Computer, Inc.
Super Micro Computer, Inc. is a technology company specializing in server and storage systems with a dominant focus on AI GPU platforms that now drive over 70% of its revenues. The company benefits from a founder-led management team with deep industry expertise and long tenure, and it has scaled rapidly with revenue growth exceeding 150% year-over-year. Despite this explosive growth, profitabilit…
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 SMCI TSM
Zone Low $114.73 $265.00
Zone High $130.02 $310.00
In Buy Zone? Yes No
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