TSLA vs TSM: Which Is the Better Buy?
Side-by-side comparison of Tesla, Inc. and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-08.
Tesla, Inc. · Consumer Cyclical
$343.23
-5.3% upside to fair value
Low Conviction
Grade D
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$365.90
-3.8% upside to fair value
Med Conviction
Grade B+
QuantHub Verdict
TSM has more upside to fair value
(-3.8%).
TSM trades at a lower forward P/E
(26.0x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
TSLA |
TSM |
| Current Price |
$343.23 |
$365.90 |
| Fair Value Estimate |
$325.00 |
$352.00 |
| Upside to Fair Value |
-5.3%
|
-3.8%
|
| Market Cap |
$1,287.9B |
$1,897.7B |
| Forward P/E |
205.5x
|
26.0x
|
| EV / EBITDA |
108.8x
|
18.1x
|
| Price / Sales |
13.6x
|
13.3x
|
| Price / FCF |
207.1x
|
54.0x
|
| Revenue Growth YoY |
-2.9%
|
+33.0%
|
| Gross Margin |
18.0%
|
59.9%
|
| Operating Margin |
4.6%
|
50.8%
|
| Return on Equity |
4.8%
|
35.1%
|
| Dividend Yield |
0% |
1.05% |
| FCF Yield |
0.48%
|
1.85%
|
| Analyst Consensus |
—
|
Strong Buy
|
Investment Thesis
Tesla remains the most polarizing stock in markets. The core auto business is deteriorating: FY2025 revenue fell 2.9% to $94.8B, net income dropped 46.8% to $3.8B, and Q4 deliveries declined 15.6% YoY to 418K units. Yet the stock trades at 13.6x TTM P/S (near 5yr highs) on the optionality of Cybercab robotaxis launching April 2026, FSD reaching unsupervised status in Austin, and Optimus humanoid …
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 |
TSLA |
TSM |
| Zone Low |
$244.00 |
$265.00 |
| Zone High |
$276.00 |
$310.00 |
| In Buy Zone? |
No
|
No
|