TSM vs WDC: Which Is the Better Buy?
Side-by-side comparison of Taiwan Semiconductor Manufacturing Company Limited and Western Digital Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-23.
Taiwan Semiconductor Manufacturing Company Limited · Technology
$452.00
+13.9% upside to fair value
Med Conviction
Grade B
High Quality
VS
Western Digital Corporation · Technology
$441.36
-16.8% upside to fair value
Med Conviction
Grade C
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 |
TSM |
WDC |
| Current Price |
$452.00 |
$441.36 |
| Fair Value Estimate |
$515.00 |
$367.30 |
| Upside to Fair Value |
+13.9%
|
-16.8%
|
| Market Cap |
$2,344.3B |
$152.1B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
19.2x
|
17.4x
|
| Price / Sales |
0.5x
|
11.8x
|
| Price / FCF |
2.1x
|
47.3x
|
| Revenue Growth YoY |
+36.0%
|
+43.8%
|
| Gross Margin |
64.2%
|
48.9%
|
| Operating Margin |
56.0%
|
34.9%
|
| Return on Equity |
39.3%
|
118.6%
|
| Dividend Yield |
0.96% |
0.12% |
| FCF Yield |
47.62%
|
2.12%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
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…
Western Digital designs and manufactures hard disk drives and flash-based storage for data centers, client devices, and consumer markets, and it is currently enjoying an extraordinary demand surge tied to AI infrastructure buildouts. In the most recent quarter, revenue grew 43.8% year over year and earnings grew 1143.2% year over year, while trailing twelve-month gross margin reached 48.9%, opera…
Accumulation Zones
| Metric |
TSM |
WDC |
| Zone Low |
$386.25 |
$275.48 |
| Zone High |
$437.75 |
$312.20 |
| In Buy Zone? |
No
|
No
|